Enbridge and its affiliates are planning to invest $100 million in two projects to connect western crude oil to refineries in the east.
The investment includes an expansion to Line 5, the pipeline running to Sarnia from Superior, Wis., which would boost production by 50,000 barrels a day.
The company will also spend $20 million to reverse the flow of part of Line 9 so that crude can flow from Sarnia to Westover, Ont.
Both projects are expected to come into service late next year.
The projects look to take advantage of diverting more light oil from Alberta and the Bakken — a rock formation that stretches through parts of Saskatchewan, North Dakota and Montana — to refineries in Ontario, Michigan and Ohio.
The company stated in a news release that the projects will allow eastern refineries to take cheaper crude, while western producers will be able to fetch a better price for their oil.
Observer Article ID#3321927