Oct. 11 (Bloomberg) -- Enbridge Inc. is conducting survey work along the Spearhead crude oil pipeline in Will County, Illinois, to gather information for potential expansions and maintenance, according to a company spokeswoman.
“If such a market-driven expansion or an integrity maintenance project moves forward, we will make formal announcements and begin a detailed consultation and regulatory review process,” Lorraine Little, an Enbridge spokeswoman, wrote in an e-mail. “At this point, however, we are merely gathering survey and environmental information,”
Enbridge is considering expansions to its main crude oil pipelines totaling about $3 billion, including a project called Flanagan South, Steve Wuori, president of liquids pipelines at Enbridge, said at an Oct. 4 conference in Toronto.
The 650-mile Spearhead, which runs to Cushing, Oklahoma, from Flanagan, Illinois, has an average annual capacity of 190,000 barrels a day, according to a company website.
The line “goes down to Cushing, probably paralleling our existing Spearhead Pipeline that now moves crude to Cushing,” he said.
Enbridge began shipping Western Canadian crude through Spearhead to Cushing, the delivery point for New York Mercantile Exchange oil futures, in 2006, after reversing the flow of the line.
“The flows over the Spearhead pipeline have become a critically important connection between the Midwest and the Midcontinent markets,” analysts at Goldman Sachs Group Inc. led by David Greely in New York, said Oct. 4 in a report.
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