* Adding 1.14 mln barrels of new oil storage
* New storage to accommodate rising oil sands output
* Work to be complete late 2012 (Adds details on new storage facilities)
CALGARY, Alberta, Sept 29 (Reuters) - Enbridge Inc (ENB.TO) will spend C$260 million ($252 million) to add more than 1 million barrels of oil storage capacity at its Edmonton, Alberta, terminal to handle rising oil sands production, Canada's No. 2 pipeline company said on Wednesday.
Enbridge, which restarted a Michigan pipeline this week following a July 26 spill, said it will install four new tanks, capable of storing 1.14 million barrels, as well as other infrastructure at the Edmonton terminal, where its mainline pipeline system -- which carries the bulk of Canada's crude oil exports to the United States -- begins.
The new capacity will be in addition to 4.6 million barrels of existing storage space at the terminal.
The company said construction will be done in two phases, with work on the first phase beginning in 2011. Phase one will add a 150,000 barrel and a 250,000 barrel tank, while the second phase will be two 372,000 barrel tanks.
Both phases will be completed in the second half of 2012.
Enbridge said the storage will accommodate additional oil from the oil sands, where production is set to rise as new projects and expansions of existing operations are completed.
"These additional tanks will help ensure the necessary infrastructure is in place to accommodate increased oil volumes anticipated in 2012," Stephen Wuori, executive vice-president for liquids pipelines at Enbridge, said in a statement.
$1=$1.03 Canadian Reporting by Scott Haggett; editing by Rob Wilson