CALGARY - Enbridge Inc. (TSX:ENB) says it has an agreement to build a 50-kilometre pipeline to serve the Hangingstone oilsands project, jointly owned by Japan Canada Oil Sands Ltd. and China's CNOOC Ltd.
Pending regulatory approvals, the 12-inch lateral pipeline would connect Hangingstone to Enbridge's regional system at Cheecham, Alta.
The agreement also provides for an optional eight-inch line to transport diluent to the project, Enbridge said in announcing the deal Thursday.
Financial terms were not disclosed.
JACOS and Nexen Energy ULC, a wholly owned subsidiary of Chinese government-owned China National Offshore Oil Corp., are partners in the project, which is operated by JACOS.
The newly constructed pipeline will have the capacity to transport 40,000 barrels per day of diluted bitumen produced at Hangingstone to the Enbridge terminal in Cheecham.
First oil from the project is expected in early 2016, with initial volumes of 18,000 bpd.
The initial term of the transportation agreement is 20 years, with JACOS and Nexen having the right to extend the agreement in successive five-year terms.
"Enbridge is pleased to enter into this agreement with JACOS and Nexen, which provides further confirmation of the sustainable growth in oilsands production," said Stephen Wuori, Enbridge president for liquids pipelines and major projects.
"This project, the 10th to connect into our infrastructure in the Athabasca region, will contribute to our ongoing strategy of connecting new oilsands projects and expanding access for production growth from the region."
Enbridge is Canada's dominant oil shipper, with a vast network connecting markets across North America. It also has a natural gas distribution business and a growing renewable energy portfolio.
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If unhindered, it's estimated that expected investment in the oilsands will result in 100,000 new jobs a year for the next 13 years, either directly or in companies supplying goods and services.
As much as 54% of the benefits accrued from ongoing investments in the Alberta oilsands will stay in Alberta.
Ontario Gets Its Share
Within Canada, the biggest winner outside Alberta is Ontario, which is expected to benefit from 10,000 new jobs per year.
B.C. Gets A Little Smaller Share
British Columbia comes next with approximately 5,400 new jobs per year. Alberta and B.C. are currently locked in a fight surrounding the proposed Northern Gateway pipeline, which would carry bitumen from the Alberta oilsands to the B.C. coast for shipping to Asian markets.
The prairies would gain 2,700 new jobs per year.
Quebec would benefit from approximately 2,500 new jobs a year.
Atlantic Canada can expect to see approximately 530 jobs a year, says the study.
The Rest Of The World
Other countries will reap approximately 27 per cent of the benefits from continued, expected investment in the oilsands. In the U.S., 8,300 jobs a year
The biggest benefactor of continued investment in the oilsands outside Alberta would be the U.S., with 8,300 new jobs being created each year.But the benefits for the U.S. extend beyond mere jobs alone.