Enbridge Inc. subsidiary Enbridge Rail (Philadelphia) L.L.C. recently entered into an agreement with Canopy Prospecting Inc. to create the Eddystone Rail Co.
The companies plan to jointly develop a $68 million unit-train facility and related local pipeline infrastructure near Philadelphia to deliver light sweet crude oil from the Bakken Formation and other regions to Philadelphia-area refineries. The facility will be designed to handle 80,000 barrels per day beginning in third-quarter 2013 and up to 160,000 barrels per day by mid-2014.
Enbridge will own 75 percent of the joint venture and serve as the facility's operator. The project includes the reconfiguration of existing track to accommodate 120-car unit trains, installation of crude offloading equipment and completion of upgrades to an existing barge loading facility.
"The Eddystone Rail Co. will be the largest unit-train facility able to receive North Dakota Bakken and other light sweet crudes directly into Philadelphia area refineries" said Canopy Prospecting President Jack Galloway in a prepared statement. "At nearly 1 million barrels per day, the region is second only to Houston in the concentration of light sweet refining capacity. Eddystone will be the first to provide access directly to those refineries from a rail facility."
Enbridge plans to proceed with customary environmental, local and regulatory approvals to facilitate a third-quarter 2013 start up.
"Rail is the fastest way to provide increased export capacity out of the Bakken, creating a near-term solution to transportation bottlenecks and the resulting crude oil pricing differentials," said Stephen Wuori, Enbridge's president-liquids pipelines. "Eddystone is an important step in our longer-term strategy to accommodate the anticipated growth of light crude oil supply."
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