Spectra Energy and its general partner, Spectra Energy Partners, the U.S. pipeline and midstream companies, proposed expansion of their oil pipeline network from Wyoming to Illinois in the U.S.
The expansion will help light, sweet, U.S. domestic crude to access Midwest and Gulf Coast markets, while it may enable future access to Eastern U.S. refiners, said an announcement on the Spectra Energy website.
The U.S. crude oil production increase comes from light, sweet crude from tight formations, while 96 percent of the 1.8-million-barrel per day growth in production from 2011 to 2013 consisted of light sweet grades, according to the U.S. Energy Information Administration.
“We are pleased by the strong demand we have seen for our existing crude oil system capacity,” said Greg Ebel, Spectra Energy’s chairman, chief executive officer and president.
'We believe this new option will be a welcome solution for customers wanting to move domestic oil to key U.S. markets,” he added in the announcement.
The expansion will come into service in 2017 with an initial capacity of approximately 400,000 barrels per day, said the statement.
Spectra Energy’s operations in the U.S. and Canada include more than 22,000 miles (35,000 kilometers) of natural gas, natural gas liquids and crude oil pipelines.
The company has approximately 305 billion cubic feet (8.54 billion cubic meters) of natural gas storage and 4.8 million barrels of crude oil storage, in addition to gathering, processing, and local distribution of natural gas.
By Ovunc Kutlu
Anadolu Agency