Enbridge eyes $2.5 billion pipeline deal for 2005
Last Updated Mon, 13 Dec 2004 08:20:52 EST
CALGARY - A Calgary company says it could have an oil pipeline built across northern British Columbia by the end of the decade.
Enbridge says says there is a lot of international interest in its Gateway project and it expects to reach preliminary supply deals with refineries in China sometime next year.
Enbridge says the best way to connect supply and demand is through an oil pipeline between northern Alberta and the B.C. north coast.
The company is proposing to build a 1,200-kilometre pipeline and a tanker facility at either Prince Rupert or Kitimat to ship the oil overseas.
Enbridge president Patrick Daniel says the Asians and the Americans are interested in tapping into Canada’s oil supply.
“We assume that 20 to 25 per cent will go into the California market, so that means 75 to 80 per cent will go into southeast Asia, primarily China.” There is also significant interest in Japan and in South Korea, he says.
Daniel says he hopes initial agreements will be signed between Enbridge, Chinese refiners and Canadian producers early next year, with formal contracts by mid-2005.
Daniel says he isn’t aware of any opposition to the pipeline from northern B.C. residents and he doesn’t expect any. He says people want to see economic development in the region.
Approval from the National Energy Board could be several years away.
FROM DEC. 10, 2004: Enbridge commits to Spearhead
If the company gets the go-ahead, it will spend $2.5 billion on the pipeline, which it hopes to have operating by 2009.
Written by CBC News Online staff