Enbridge to provide transportation services to JACOS oil sands project

Canadian energy company Enbridge will construct facilities and provide transportation services to the Japan Canada Oil Sands (JACOS) Hangingstone oil sands project.

JACOS and Nexen Energy, a wholly-owned subsidiary of CNOOC, are partners in the project. The companies have signed a long-term agreement for transportation services from Cheecham to Edmonton using Enbridge’s regional infrastructure. They have agreed to commercial terms for the incremental facilities to connect Hangingstone to Cheecham.

The new constructed pipeline will have the capacity to transport 40,000 barrels per day (bpd) of diluted bitumen produced at the Hangingstone project to the Enbridge terminal in Cheecham, Alberta, with initial volumes of 18,000bpd. First oil from the project is expected in early 2016.

Enbridge liquids, pipelines and major projects president Stephen Wuori said that the agreement provides further confirmation of the sustainable growth in oil sands production.

"This project, the tenth to connect into our infrastructure in the Athabasca region, will contribute to our ongoing strategy of connecting new oil sands projects and expanding access for production growth from the region," Wuori added.

The company plans to construct and operate a 50km, 12in lateral pipeline to connect the project to its Cheecham regional system. The scope also includes an eight inch diluent line to transport diluent to the project.