The Liquids Pipelines Assets consist of the Canadian Mainline, the Regional Oil Sands System, the Canadian portion of the Southern Lights Pipeline, the Bakken Pipeline and 100% interest in the Hardisty Contract Terminal and Storage Caverns. These assets are described in more detail below.
Canadian portion of the Mainline System
The Canadian portion of the Mainline System includes a number of large diameter crude oil, NGL and refined products pipelines receiving hydrocarbon liquids at, and making deliveries to, various locations in western Canada and connecting to the U.S. Mainline System owned by Enbridge Energy Partners L.P. at the Canada/U.S. border near Gretna, Manitoba. The western Canada segment of the Mainline System includes the Canadian segment of the Alberta Clipper pipeline; the Canadian segment of the Line 3 replacement project (the Line 3 Replacement Project); the Edmonton to Hardisty Expansion Program; and the Canadian Mainline System Terminal Flexibility and Connectivity Program. The Canadian Mainline System also includes a number of pipelines in eastern Canada.
Please refer to the links below for more details.
- Line 9B Reversal and Line 9 Capacity Expansion Project Overview
- Line 3 Replacement Program
- Line 10 Westover Segment Replacement Project
- Mainline Enhancement Program
Regional Oil Sands System:
The Regional Oil Sands System includes two long haul pipelines: the Athabasca Pipeline and the Waupisoo Pipeline, and two large terminals: the Athabasca Terminal located north of Fort McMurray, Alberta and the Cheecham Terminal, located 70 km (45 miles) south of Fort McMurray where the Waupisoo Pipeline initiates. The Regional Oil Sands System also includes the Wood Buffalo Pipeline, Woodland Pipeline and Norealis Pipeline, all of which provide access for oil sands production from near Fort McMurray to the Cheecham Terminal, as well as a variety of other facilities including the MacKay River, Christina Lake, Surmont and Long Lake laterals and related facilities. The Regional Oil Sands System currently serves eight producing oil sands projects.
The Athabasca Pipeline (Line 19) is a 540-kilometre (335-mile), 30-inch-diameter synthetic and heavy oil pipeline, with average annual capacity of up to 570,000 barrels per day, travelling from the Athabasca oil sands in the Fort McMurray region to Hardisty, Alberta.
The Waupisoo Pipeline (Line 18), a 30-inch-diameter line, travels 380 km (230 miles) from Enbridge’s Cheecham Terminal to Enbridge’s Edmonton Terminal, with a capacity of up to 550,000 bpd.
The Woodland Pipeline (Line 49), a 36-inch-diameter line, travels 140 km (87 miles) from the Kearl Oil Sands Project to Enbridge’s Cheecham Terminal, with further downstream connection available to existing Enbridge pipeline transportation systems. Woodland has an average annual capacity of up to 400,000 bpd, expandable to 800,000 bpd.
Wood Buffalo Pipeline
The Wood Buffalo Pipeline (Line 75), a 30-inch-diameter line, parallels Enbridge’s Athabasca Pipeline, and provides incremental capacity between Enbridge’s Athabasca Terminal and its Cheecham Terminal. The Wood Buffalo line travels 95 km (59 miles), and provides capacity of up to 550,000 bpd.
The Norealis Pipeline (Line 50), a 24-inch-diameter line, provides pipeline and terminaling services to the Sunrise Oil Sands Project, and travels 112 km (69 miles) to Enbridge’s Cheecham Terminal. Completed in the second quarter of 2014, the Norealis Pipeline has an initial capacity of up to 90,000 bpd, and is expandable to over 270,000 bpd.
Please see links below for more details on the Regional Oil Sands System Projects under development:
- Hangingstone Pipeline Project
- JACOS Pipeline Project
- Norlite Diluent Pipeline Project
- Wood Buffalo Extension Project
The Fund owns the Canadian portion of the Southern Lights diluent pipeline. The Southern Lights Pipeline is a 180,000 bpd 16/18/20-inch diameter pipeline fully-contracted single stream pipeline that ships diluent from the Manhattan Terminal near Chicago, Illinois to three western Canadian delivery facilities, located at the Edmonton and Hardisty terminals in Alberta and the Kerrobert terminal in Saskatchewan. This pipeline was placed into service on July 1, 2010.
The Fund owns Class A Units in Southern Lights Holdings, L.L.C., which indirectly owns the U.S. segment of the Southern Lights Pipeline. The Class A Units are non-voting and do not confer any governance rights or ownership rights in the Southern Lights Pipeline. They entitle the Fund to receive scheduled and fixed quarterly distributions until June 30, 2040 in priority to the holder of Class B Units, comprising a return on and of capital. The distributions represent the equity cash flows attributable to the core rate base pursuant to the terms of the current transportation service agreements for the Southern Lights Pipeline. The Fund has the right to extend the term of the investment beyond June 30, 2040 for two consecutive additional 10-year terms and has the right to participate in up to 100% of the equity returns from future capacity expansions, if any, on the Southern Lights Pipeline for a term of 30 years commencing on the in-service date of such expansion through the purchase of additional units.
The Bakken Expansion Pipeline is ideally positioned to capture oil production in the highly prolific Bakken region that spans Saskatchewan, North Dakota and Montana. The Bakken region has quickly grown to become one of the leading oil producing regions in North America. Production from the Bakken Formation in North Dakota alone has grown from 200,000 barrels per day (bpd) to 700,000 bpd. Recent projections estimate that production could reach 1.2 million bpd or more by 2018.
In March 2013, the Bakken Expansion Pipeline (BEP) went into service. A joint venture with Enbridge Energy Partners, BEP enables delivery of growing crude oil production in North Dakota to the Mainline System at Cromer, Manitoba. BEP increased takeaway capacity from the Bakken region by 145,000 bpd and is predominantly underwritten by take-or-pay contracts.
Hardisty Contract Terminals & Storage Caverns
As of September 1, 2015, the Fund took ownership of three recently renewed storage contracts at the Hardisty Contract Terminal. As part of this transaction, Enbridge released its expansion rights for the terminal and associated storage caverns, located in Hardisty, Alberta.
The Fund owns one of the largest contract crude oil storage facilities in North America, consisting of:
Hardisty Contract Terminals: 18 above-ground crude oil tanks and one above ground condensate tank representing approximately 7.5 million barrels of storage capacity, adjacent to the Mainline System operational terminal and at the junction of key regional receipt and export pipelines.
Hardisty Storage Caverns: four below-ground storage caverns and two above-ground buffer tanks, representing approximately 3.5 million barrels of storage capacity, adjacent to the Hardisty Contract Terminals.
All 11 million barrels of crude oil storage capacity is contracted under long-term take-or-pay agreements with credit-worthy counterparties. As of Sept 2015, the contracts had an average remaining term of approximately 7 years.