Enbridge will invest $6.2bn in its Light Oil Market Access Program, which aims to provide increased pipeline capacity on Enbridge's North Dakota regional system; further expand capacity on the U.S. mainline system; enhance Canadian mainline terminal capability; upsize the Eastern Access Program and provide additional access to U.S. Midwestern refineries. The Program will provide access from the Enbridge system to attractive refinery markets in Ontario, Quebec and the U.S. Midwest for an additional 400,000 bbl/d of light oil.
On the supply side, production from the Bakken formation centered in North Dakota has grown from 200,000 bbl/d to 700,000 bbl/d in the last five years with potential to expand to 1,200,000 bbl/d or more in the next five years, if transportation access to refinery markets is available. Additional growth in light crude production of 100,000 bbl/d or more is also anticipated from the application of the latest recovery technologies to the Cardium and Viking formations in Alberta, Canada. Supply from these areas has become increasingly attractive to refineries in the U.S. Midwest and eastern Canada compared to much more costly alternative sources.
The individual projects within the Program are targeted to be available for service at varying dates from 2014 to early 2016.