Enbridge forms joint venture to transport Bakken crude

Mon Nov 26, 2012 9:54am EST
 

(Reuters) - Enbridge Inc, Canada's No. 2 pipeline company, said it will partner privately held Canopy Prospecting Inc to build train and pipeline infrastructure near Philadelphia to transport crude oil from the Bakken formation to nearby refineries.

The joint venture will have a capacity to handle 80,000 barrels per day (bpd) in the third quarter of 2013 and can be expanded to 160,000 bpd as early as mid-2014, Enbridge said in a statement.

Output in the Bakken, which spans North Dakota, Montana and Canada, is expected to double to about 1.2 million barrels per day by 2015.

Enbridge, which expects the project to cost about $68 million, will own 75 percent and operate the venture, to be called Eddystone Rail Company.

Enbridge shares were up 31 Canadian cents to C$39.41 on the Toronto Stock Exchange on Monday.

(Reporting by Krithika Krishnamurthy in Bangalore)