October 1, 2012 [OPIS] - Enbridge Inc. has entered into a deal with Suncor Energy Oil sands to expand existing infrastructure at its Athabasca Terminal in western Canada to accommodate incremental bitumen volumes from Suncor, Enbridge said late Thursday.
The rising volumes are from Suncor’s Firebag 3 and Firebag 4, and Suncor has agreed to underpin Enbridge’s investment through a long-term services agreement during which Enbridge recovers all operating costs, a return on equity and all of its invested capital.
The expansion work, which has been underway since November 2011, will cost Enbridge some $150 million, and the new facilities will be in service starting in the second quarter of 2013, the company said.
Enbridge will build a new 350,000 barrel tank as well as install new booster pumps, and meters and make modifications to existing piping and manifolds, the company said.
