Published on : Nov 05, 2015
The Canadian company Enbridge Inc. has decided to spend US$5 billion for the construction of three oil storage facilities in Gulf of Mexico as a foot ahead in its aim at fortifying the company’s strategic position in the U.S. market, a company official has mentioned.
The move follows the recent event when the U.S. House of Representatives voted to lift the 40-year old ban on the export of crude oil. If this ban is repealed, the oil facilities would help in positioning Enbridge, one of the largest companies operating in the field of oil logistics in the world, at the forefront of the rapidly increasing oil export industry of the U.S.
Mike Moeller, Enbridge Energy’s general manager of midcontinent assets, said in a recent interview held in Cushing, the largest commercial crude oil storage center in the U.S., that the robust Enbridge system will be enhanced by the development of terminals in the Gulf of Mexico.
He added that the plan for constructing the oil storage has been finalized as a response to the requests from company’s customers, including oil refiners, traders, and producers. Having storage capacity in the Gulf of Mexico will give the company’s customers more options there. He also mentioned that Enbridge operated the longest liquids and crude oil transportation systems in the world.
The plan is of building three storage terminals that will stretch from Houston to New Orleans at St. James Parish. Each of the three facilities will have pipelines, storage tanks, ship docks, and a variety of other infrastructure that will allow both import and export of crude oil from the U.S. as well as Canada, as well as a variety of refined products and processes condensate.
Though the plans are still in their early ages, the company states that the facilities will be able to roll out in phases in the coming few years.