Enbridge mulls re-reversal of Canada oil pipeline

By Scott Haggett

EDMONTON, Alberta, March 10 (Reuters) - Enbridge Inc (ENB.TO: Quote, Profile, Research) is looking at moving oil sands crude to the U.S. Northeast and Eastern Canada by reversing the flow of one of its pipelines or building a new one, its chief executive said on Monday.

Enbridge, whose pipelines carry the lion's share of Canada's crude exports to the United States, may construct a new line to Philadelphia from southern Ontario or re-reverse the flow of Line 9 to Montreal from Sarnia, Ontario, Enbridge CEO Pat Daniel said.

Enbridge switched direction of Line 9's oil flow a decade ago so it could ship imported oil into central Canada.

Speaking to reporters following a speech to the World Heavy Oil Congress in Edmonton, Daniel said the company could revamp the existing line at relatively low cost.

The price of changing the direction of Line 9's flow would be C$100 million ($100 million) or slightly more, he said.

The company could reverse Line 9, which was built in the 1970s as part of a protectionist federal energy policy, before it completes its proposed Gateway pipeline to the Pacific Coast from Alberta. That project is expected to be in service some time between 2012 and 2014.

"If we move to reverse Line 9, that could come before Gateway," Daniel said. "If it is large volume, 400,000 barrels a day, Gateway would come first."

Line 9 currently has a capacity of 240,000 barrels a day.