As production from Canada's oil sands continues to climb, more multibillion-dollar pipeline projects are being announced to get the product into the U.S. supply mix.

Enbridge Inc. and Enbridge Energy Partners plan to build two projects as additions to Enbridge's common-carrier mainline system. These are the $2-billion Alberta Clipper project and the $257-million Line 4 extension. Both are designed to move oil-sands production to new U.S. markets. (All dollars are U.S.)

Alberta Clipper is a 990-mile, 36-inch crude line from Hardisty, southeast Alberta, to Superior, Wisconsin, primarily following Enbridge's existing right of way. To balance the increased capacity into Superior, a low-cost expansion of the 42-inch Southern Access line to Chicago will be done for nearly $100 million.

The Canadian segment of Alberta Clipper is expected to cost approximately $1.3 billion and the U.S. segment is expected to cost approximately $800 million.

During first-quarter 2007, Enbridge and the Canadian Association of Petroleum Producers held discussions to finalize the scope, timing and performance incentives of these projects. Anticipated completion for Alberta Clipper is late 2009 to mid-2010.

Enbridge will immediately begin long-lead-time activities such as finalizing steel pipe orders, public consultation, preparatory work for right of way, and working space access agreements and permits. Alberta Clipper will be its largest project ever.

Meanwhile, TransCanada Pipe Line Co. has filed an application with the National Energy Board for approvals to build and operate the Canadian portion of its proposed Keystone pipeline. This 1,842-mile pipeline will move crude from Hardisty to refining markets at Wood River and Patoka, Illinois. The estimated capital cost of the Canadian portion alone is $567 million.

Keystone requires approvals from a variety of U.S. agencies at the state and local level. The U.S. portion of the project includes approximately 1,075 miles of new pipeline construction. The company hopes to begin construction in 2008, with commercial operations scheduled by fourth-quarter 2009.

Enbridge also plans the Southern Lights pipeline project, designed to move diluent from the U.S. Midwest to Western Canada, for use in oil-sand transportation. The total price of the Southern Lights pipeline project, including the U.S. facilities, is $1.3 billion.

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