Pipelines are still the safest and most reliable way to transport large quantities of energy products. However, to bridge the energy transportation infrastructure gap, Enbridge recognizes the value of employing a multimodal transportation strategy to bridge its longer-term market access initiatives.
Pipelines and rail serve complementary roles, and rail plays a role in extending crude oil supply networks. Accordingly, Enbridge has established a business development team focused on identifying and developing crude-by-rail solutions -- specifically, the operation of complementary rail-based loading and unloading infrastructure.
As an example, Enbridge rail facilities are responding to producer and shipper demands for more flexible, economical transportation of high-quality crude oil from the Bakken formation, located in eastern Montana, western North Dakota, and southern Saskatchewan and Manitoba. Rail transportation in or near the Bakken also helps reduce truck traffic on congested public roads in western North Dakota. And the construction of rail facilities near existing refineries in the eastern United States has allowed rail cars to offload their shipments directly to end refiners.
These Enbridge rail projects boost the availability of new sources of reliable, domestic crude oil to Philadelphia and other eastern U.S. refineries, reducing reliance on imports from overseas. In the future, as long-term pipeline solutions are constructed, rail loading facilities will continue to be used as a means of shipping excess petroleum.
At the same time, safety is our highest priority at Enbridge. We are committed to safe and reliable energy transportation, and our rail loading and unloading operations are held to those same high standards.
Enbridge’s recently built Berthold Station, at Berthold, N.D., provides a solution for moving Bakken crude from North Dakota to markets across the United States.
The Berthold Station rail facility, which saw full-capacity service begin in March 2013, now offers an additional 80,000 barrels per day (bpd) of export capacity. The second phase of expansion at Berthold Station included two 150,000-barrel tanks, as well as 1.6 miles (2.56 kilometres) of facility piping. The facility is capable of loading eight unit-trains per week, with each unit-train carrying approximately 118 rail cars of Bakken product.
Eddystone Rail Project
The Eddystone Rail Project provides Pennsylvania-and-region refineries access to growing supplies of crude oil from U.S. producers. The Eddystone Rail Facility, based in Eddystone, Pa., is designed to receive crude from the Bakken and deliver it to refineries in the northeastern U.S., primarily along the Delaware River. Allowing ready access to this growing supply of quality crude oil promotes energy independence, and provides needed flexibility of crude oil deliveries for shippers and, ultimately, North American consumers.
The Eddystone Rail Facility, which went into service in May 2014, includes an upgraded and modified 200,000-barrel crude oil storage tank, as well as installation of a new inner and outer loop track and high-speed hydraulic crude-oil offloading equipment. The project is initially expected to receive and deliver 80,000 bpd, and can ultimately expand to receive up to 160,000 bpd.
For more information on the Eddystone Rail Project, please click here.
The South Cheecham Rail and Truck Terminal (SCRTT) is a 50-50 joint venture between Enbridge and Keyera Corp., and is based about 75 killometres (47 miles) southeast of Fort McMurray, Alta., near Enbridge's Cheecham Terminal. The SCRTT became operational in September 2013 with an initial capacity of about 32,000 barrels per day (bpd) of loading and unloading capacity. The SCRTT will accommodate both truck and pipeline deliveries and receipts, and will also have pipeline connectivity to the Enbridge terminal.
Enbridge has approved the construction of a pipeline interconnection between the Enbridge Pipelines (Saskatchewan) Inc. System and a crude oil rail terminal near Cromer, Manitoba, owned by Tundra Energy Marketing Limited. The connection is expected to be in service during the first quarter of 2015. The rail facility is capable of handling 30,000 bpd, with an ultimate capacity in excess of 60,000 bpd.
Livingston Rail Terminal
An affiliate of Enbridge is exploring the potential to establish a rail unloading facility at Enbridge’s Flanagan Terminal near Pontiac, Illinois. The proposed rail terminal, which is still in development, would be designed to handle two unit trains per day, or approximately 140,000 barrels per day (bpd). Subject to securing commercial support, it is anticipated that the terminal could be in service as early as the first quarter of 2016.
If built, the terminal is expected to provide regional refineries access to growing supplies of crude oil from North American producers, and to also provide relief during periods when upstream apportionment prevents those barrels from moving via an all-pipeline route.