07/25/2013 04:32 EDT | Updated 09/24/2013 05:12 EDT

Enbridge's Woodland Pipeline Extension Going Ahead

Flickr: mastermaq
CALGARY - Enbridge Inc. (TSX:ENB) says it's proceeding with plans to build a $1.3-billion extension to its Woodland Pipeline.

The Woodland Pipeline currently serves Imperial Oil Ltd.'s (TSX:IMO) Kearl oilsands project, running between the mine site and Enbridge's Cheecham terminal.

The new project will extend the pipeline 385 kilometres from Cheecham to the Edmonton area, home to major refineries and the start-point of major export pipelines.

The line will have an initial capacity of 400,000 barrels per day, with the ability to potentially double that.

The project received approval from Alberta's energy regulator about a year ago.

The Woodland Pipeline Extension is slated to start up in the third quarter of 2015.

The Kearl mine — built in partnership with Imperial's U.S. parent, ExxonMobil Corp. — started up earlier this year and is in the process of ramping up to its daily production rate of 110,000 barrels per day.

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