Enbridge will expand the tankage of its mainline terminal at Edmonton, Alberta, Canada, by one million barrels, which is expected to cost about $260m.
The expansion will enable the firm to accommodate growing oil sands production from its Waupisoo Pipeline and other non-Enbridge pipelines.
The expansion, to be conducted over two phases, will comprise construction of four tanks in the North Terminal and the installation of a short segment of pipeline and related infrastructure.
Subject to approval, work on the project will begin early in 2011.
Phase I is expected to come onstream in the third quarter of 2012 and phase II in the fourth quarter of 2012.
The expansion will be undertaken under the terms of the 2010 Incentive Tolling Settlement between EPI and the Canadian Association of Petroleum Producers (CAPP).