Enbridge rail plans fail to move forward

OREANDA-NEWS. Proposals to build crude-by-rail facilities in Flanagan, Illinois, and Cushing, Oklahoma, will not move forward right now because of a lack of shipper interest, Enbridge Energy executives said today.

"It is an option that's out there for industry," said president of liquids pipelines Guy Jarvis. "To this point in time, we've been unsuccessful in securing the commercial support we need."

The company could expand its 300,000 b/d Line 9 pipeline to east coast refiners, which is expected to start up in the second quarter. The line could be expanded by 10-20pc.

Enbridge executives "feel pretty confident" that in the near term they will have opportunities to expand storage facilities in Hardisty, Alberta.

Canadian mainline throughputs averaged 2.2mn b/d in the first quarter, up by 16pc on the year. Volumes on the company's 600,000 b/d Flanagan South pipeline and 850,000 b/d Seaway system were flat due to apportionment upstream of those lines.

The company expects to start up its reversed Line 9 pipeline in the second quarter, carrying crude to east coast Canadian refiners.

Enbridge reported a first quarter loss of \$383mn.