2007-06-05 20:57:51 -
HOUSTON (AP) - Exxon Mobil Corp. and Canada-based Enbridge Inc. said Tuesday they are looking at building a new pipeline that would provide another avenue for growing Canadian crude supplies to reach the United States' important Gulf Coast refining region.
The pipeline would transport crude from a storage hub in Patoka, Illinois, to Beaumont, Texas,
and onward to Houston, the companies said in a statement. They said they have been in discussions with potential shippers of Canadian crude about the scope, timing and value of the project, which is targeted to be in service by the end of 2010.
«The capabilities and experience of the two companies lend strength to the proposal and will be complimentary to Enbridge projects that are under development,» said Patrick D. Daniel, Enbridge's president and chief executive.
Those projects include a pipeline from the central U.S. to northern Alberta, Canada, and another to extend a crude oil pipeline from the Chicago area south to the distribution hub at Patoka.
Enbridge, one of Canada's biggest energy companies, operates the world's longest oil and liquids pipeline system, which carries Canadian crude to U.S. markets in the East and Midwest.
A little more than a year ago, Exxon Mobil began pumping Canadian crude directly to the Gulf of Mexico through a reconfigured 2,300-mile (3,700-kilometer) pipeline network, creating an alternative to long tanker trips. To reconfigure the pipeline, Irving-based Exxon, the world's largest publicly traded oil company, reversed the flow of an inactive pipeline segment from Corsicana, Texas, to Patoka that historically moved foreign crude to the Midwest.
In March, BP PLC said it will consider reversing a pipeline to deliver Canadian crude to Oklahoma and would offer discounted capacity to shippers willing to make long-term contracts.
The 600-mile (965.56-kilometer) pipeline could be flowing southbound by mid-2009, BP said, and would transport light Canadian crude oil to Cushing, Oklahoma, a major oil hub.
Analysts have said such projects are important because they provide a reliable supply from a nation without the political instability often confronting U.S. oil and gas companies and not likely affected by hurricanes.
Exxon Mobil shares fell 10 cents to $84.12 in trading Tuesday. They've traded in a 52-week range of $56.64 to $84.44. Enbridge shares were off 66 cents to $35.37. Their 52-week range is $29.01 to $36.15.
