Enbridge gets Ottawa's go-ahead on pipelines

CALGARY, Alberta (Reuters) - Enbridge Inc (ENB.TO: Quote) said on Tuesday the Canadian government has approved its planned Alberta Clipper and Southern Lights pipeline projects.

Enbridge, Canada's No. 2 pipeline firm, said Ottawa's approval of the two lines will help with obtaining final clearance for construction from Canada's National Energy Board, though some approvals from U.S. regulators are still pending.

"We're excited to achieve this major milestone towards starting construction on these two projects," Pat Daniels, the company's chief executive, said in a statement.

The two lines are part of a C$12 billion ($12 billion) slate of pipeline projects planned by Enbridge to accommodate rising output from Canada's oil sands, where production is set to reach 3 million barrels a day by 2015, nearly triple current volumes.

The C$3 billion Alberta Clipper project will carry 450,000 barrels of oil a day from the pipeline hub of Hardisty, Alberta, to Superior, Wisconsin. The line, able to be expanded to 800,000 bpd capacity, is expected to be in service in two years.

The C$2.2 billion Southern Lights project will carry ultralight oils from the U.S. Midwest to the oil sands region, where it will be blended with the tar-like bitumen so it can be shipped by pipeline.

The Southern Lights line is also expected to operating in 2010.

($1=$1.00 Canadian)

(Reporting by Scott Haggett; editing by Rob Wilson)