09/27/2012 07:15 EDT | Updated 11/27/2012 05:12 EST

Enbridge's New Suncor Oilsands Projects: Energy Giant Spends Whopping $150 Million To Expand Tankage

Flickr: roy.luck
CALGARY - Enbridge Inc. is expanding tankage at its Athabasca Terminal to accommodate growing production from two of Suncor Energy Inc.'s oilsands projects in northern Alberta.

The Calgary-based pipeline giant says the $150-million expansion includes a 350,000-barrel tank and other infrastructure.

Construction began in July and the expansion is expected to be in service in mid-2013.

Suncor and Enbridge have signed an agreement that will see the pipeline company recover all operating costs, a return on equity and all of its invested capital.

The expansion is meant to handle growing volumes from Suncor's Firebag 4 and Firebag 4 developments.

"We're pleased to further strengthen our relationship with Suncor by delivering timely and innovative terminalling and transportation services," said Steve Wuori, president of liquids pipelines and major projects at Enbridge.

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