CALGARY — Enbridge Inc. (TSX:ENB) and Enterprise Products Partners LP (NYSE:EPD) have agreed to build a new crude pipeline to relieve an oversupplied depot in Oklahoma and move oil to Texas Gulf Coast refineries.
Enbridge did not provide a cost estimate for the new Wrangler pipeline, which will run 800 kilometres from Cushing, Okla., to Enterprise’s ECHO storage terminal in Harris County, Tex.
The companies say the pipeline is expected to carry 800,000 barrels per day of medium-to-light crude oil that is cheaper than oil imports currently being used by Gulf Coast refiners.
It will also allow Gulf Coast refineries more access to crude oil flowing out of Alberta’s conventional and oilsands facilities.
Oil pipelines have created controversy in recent months as environmentalists and labour groups have spoken out against TransCanada (TSX:TCP) planned Keystone XL pipeline, saying it could harm the environment and destroy jobs in the U.S.