Page 6 - NorthAmOil Week 10 2023

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Enbridge to expand Flanagan South,

build oil terminal on Gulf

NORTH AMERICA ENBRIDGE is negotiating with shippers for The EHOT will have access to Enterprise
incremental contract capacity of 95,000 barrels Products’ planned Sea Port Oil Terminal
per day (bpd) on the Flanagan South Pipeline. (SPOT), on which a final investment decision
The oil pipeline runs from Flanagan in Illinois to (FID) has not yet been made. The SPOT will
Cushing, Oklahoma. have a capacity of 85,000 barrels per hour and
These new volumes would increase secured will be able to accommodate load tankers of up
throughput on Flanagan South and secure long- to 2mn barrels in capacity. It received federal The Calgary-
haul demand on the entire Enbridge network approval in November 2022.
out of Western Canada, said Enbridge. Flanagan The EHOT will also have access to the Hou- based company
South currently has a capacity of 585,000 bpd. ston region refining complex and export oppor-
An open season for the incremental contact tunities through the Seaway docks at Freeport has also decided
capacity will be held later in March. and Texas City, noted Enbridge.
The Calgary-based company has also decided Enbridge announced a total of $3.3bn in new to proceed with
to proceed with construction of the Enbridge investments, of which CAD$2.4bn ($1.75bn) construction
Houston Oil Terminal (EHOT) in Freeport, would be allocated to new gas transmission
Texas, at an initial cost of $240mn. This will modernisation and utility capital. Enbridge will of the Enbridge
facilitate the additional commitments on Flan- acquire 35bn cubic feet (991mn cubic metres)
agan South, as well as existing Flanagan South of “premium” Gulf Coast gas storage assets – Houston Oil
shippers, said Enbridge. named Tres Palacios – for $335mn to support its
The EHOT is initially expected to have 2.5mn US Gulf Coast LNG export strategy. Terminal.
barrels of storage capacity, with an ultimate As part of the $3.3bn in new investments,
capacity of 15mn barrels of capacity once fully the company has entered into an agreement to
built. Storage will be based on long-term take- invest $80mn in a leading renewable natural gas
or-pay contracts. infrastructure company, Divert. Meanwhile,
The greenfield terminal, which will be located Enbridge is also planning to build a gas pipeline
adjacent to the terminus of the Seaway pipeline, to supply ArcelorMittal Dofasco in Hamilton,
from Cushing to Freeport, will be primarily Ontario, supporting what the company said
used for heavy crude. Seaway is co-owned by would be the largest greenhouse gas (GHG)
Enbridge and Enterprise Products. emissions reduction project in the province.™

P6 www. NEWSBASE .com Week 10 09•March•2023