Enbridge will construct a new originating terminal (Hartley terminal) at the Sunrise Project, a 112km, 24-inch diameter pipeline from Hartley to Enbridge’s Cheecham Terminal and additional tankage at Cheecham.
The estimated cost of the project is approximately $475m with an initial capacity of 90,000bpd, expandable to 270,000bpd.
The facilities are expected to be in service in the latter half of 2013.
As per the terms of the agreement, Enbridge will also provide pipeline transportation services on its existing Regional Oil Sands System for up to 90,000 barrels per day of diluted bitumen produced from Phase 1 of the Sunrise Project.
All of these arrangements remain subject to the final sanctioning of the Sunrise Project.
The initial term of the pipeline and terminaling agreement is 20 years with Husky having the right to extend the agreement in successive five year terms for a total contract life of 45 years.