CALGARY, Alberta, Feb 21 (Reuters) - Enbridge Inc (ENB.TO) has rekindled plans for a C$4 billion ($3.96 billion) pipeline to move oil sands-derived crude to Canada’s West Coast so it can be shipped to Asia in response to demand from producers and refiners, Enbridge’s chief executive said on Thursday.
Enbridge has attracted enough of its customers to fund the remaining costs to get the Gateway Pipeline project to the regulatory approval stage, CEO Pat Daniel said.
His company put the 400,000 barrel a day development on the backburner in late 2006 to concentrate on expanding its pipeline network in the United States.
“The pull from the other end of Gateway initially was primarily from the Chinese, but in this initiative the Chinese are not participants, and the pull ranges from Japan down to Singapore -- so much broader Southeast Asian interest,” Daniel Daniel told investors at a conference in Whistler, British Columbia.
In 2005, PetroChina (0857.HK) signed a deal to cooperate with Enbridge on the project to ship extra-heavy crude across the Rocky Mountains to the Pacific Coast and consider signing up for half the 400,000 barrel a day capacity.
Enbridge has now offered 50 percent of the equity in the project to shippers involved in getting Gateway back on track and is garnering “good uptake,” Daniel said.
Plans for Gateway have called for the proposed pipeline to extend to a terminal in Kitimat, British Columbia, from Strathcona County in Alberta. An adjacent line would move condensate in the other direction.
$1=$1.01 Canadian Reporting by Jeffrey Jones; Editing by Peter Galloway