Fall kicked off with a slew of midstream infrastructure-expansion projects concentrated in the areas to the north. Many companies are attempting to increase pipeline and storage capacity as production ramps up in North Dakota and western Canada.

After announcing in May that it planned to spend $600 million in pipeline and infrastructure upgrades, Enbridge Energy Partners LP and its affiliates put those plans in motion with three major expansion projects. In late September, Enbridge Pipelines Inc. announced that it had received regulatory approval from the Alberta Energy Resources Conservation Board for the Woodland Pipeline Extension Project, giving the company the green light to begin work on the nearly 240-mile pipeline extension. Enbridge announced that it would construct a 36-inch diameter pipeline that is planned to run from its Cheecham regional oil sands terminal to its mainline terminal in Edmonton, Alberta, bringing on initial capacity of 400,000 barrels (bbl.) per day. The project is expected to be in service by 2015.

At the same time, Enbridge Inc. announced that it had entered into an agreement with Suncor Energy Oil Sands Ltd. Partnership. According to a company release, Enbridge plans to expand infrastructure at its Athabasca Terminal by constructing a 350,000 bbl. tank, in order to adjust to the incoming volumes arriving from Suncor's Firebag 3 and 4 developments. Construction began in July 2011 and is expected to be in-service in the second quarter of 2013.

Reports also surfaced in October that Enbridge Energy Partners LP also plans to expand the capacity of its Alberta Clipper Pipeline in Hardisty, Alberta, by upgrading three pumping stations, which will increase capacity by 120,000 bbl. per day.

Enbridge is not the only company jumping on the expansion bandwagon. After a successful open season, Gibson Energy Inc. announced that it will begin construction on two 400,000 bbl. oil storage construction tanks at its Hardisty Terminal. A Gibson release stated that the tanks will be connected to third-party pipeline and facilities, and commissioning is expected to occur in early 2014.

Also this month, The Williams Cos. entered into a long-term processing agreement with a Canadian oil-sands producer. According to a release, Williams plans to support the agreement by constructing a new liquids extraction plant near Fort McMurray, Alberta, as well as building an extension of its Boreal Pipeline that will transport a natural gas liquids/olefins mixture to the company's Redwater facility in Edmonton.

Elsewhere, in North Dakota, after receiving approval from the Federal Energy Regulatory Commission, Alliance Pipeline is moving ahead with construction preparations for its Tioga Lateral Pipeline. Alliance will construct a 79.3-mile, 12-inch diameter pipeline to connect natural gas production from the Williston basin into North Dakota and then onto the Chicago market hub. The pipeline will have a capacity of 106.5 million cubic feet (MMcf) per day and has already received a transportation commitment from Hess Corp. for 61.5 MMcf per day. The new pipeline is expected to be up and running by summer 2013.

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