Calgary-based pipeline builder Enbridge Inc. is investing nearly $4 billion in a new round of construction that will increase the flow of oil sands crude to the U.S. Gulf and help ease a bottleneck that has led to a glut of supply in the Midwest.
Enbridge said early Tuesday it will expand its Flanagan South Pipeline from Flanagan, Ill. to Cushing, Okla. to a 36-inch diameter line with a capacity of 585,000 barrels per day.
The Flanagan pipeline, expected to be in service by mid-2014, will be built along the route of Enbridge's pipeline from southeast of Chicago to Oklahoma.
In a separate announcement, Enbridge said it will twin the jointly owned Seaway Pipeline from Cushing to the Gulf Coast at Houston, where crude is expected to start flowing in June.
The expansion will add 450,000 barrels of capacity to that system. Both projects will cost Enbridge $3.8 billion.