UPDATE 2-Enbridge to spend $551 mln to up Bakken capacity

* EEP to undertake US projects at about $370 mln

* Enbridge Income to undertake Canadian projects
(Adds details, updates share movement)

Aug 24 (BestGrowthStock) – Enbridge Inc (ENB.TO: ), Canada’s No. 2
pipeline company, said it will spend about $551 million to
raise the capacity of its Bakken crude oil pipeline by 145,000
barrels per day to handle production surge from the oil-rich
rock formation.

New technology has enabled companies to extract gas and oil
from previously uneconomic shale plays, triggering a boom in
production. Bakken — lying under parts of North Dakota,
Montana and southern Saskatchewan — is touted as having the
highest percentage of liquids.

The news of expansion comes even as Enbridge’s U.S.
affiliate Enbridge Energy Partners (EEP.TO: ) said recently the
oil spill that fouled a Michigan river system in July could
cost it as much as $400 million. [ID:nN17156822]

The current expansion is a series of projects that will
provide incremental capacity from North Dakota into the
Enbridge mainline at Cromer, Manitoba, by the first quarter of
2013, the company said.

In January, the company had completed an expansion of its
North Dakota oil pipeline system, raising its capacity to
161,000 barrels per day. [ID:nN0546884]

Calgary-based Enbridge, whose pipelines ship the bulk of
Canada’s oil exports to the United States, said the expansion
program will involve U.S. projects that will be undertaken by
Enbridge Energy Partners for about $370 million.

Canadian projects, on the other hand, will be undertaken by
its other affiliate Enbridge Income Fund (ENF_u.TO: ) at a cost
of about C$190 million ($180.8 million), the company added.
Enbridge Energy Partners has proposed a separate project to
expand its pipeline system south of the Missouri river, the
company said. Enbridge’s shares, which have risen 13 percent in
the last six months, were trading flat at C$52.26 Tuesday on
the Toronto Stock Exchange.
($1=1.051 Canadian Dollar)
(Reporting by Bhaswati Mukhopadhyay and Krishna N. Das in
Bangalore; Editing by Unnikrishnan Nair, Maju Samuel)

UPDATE 2-Enbridge to spend $551 mln to up Bakken capacity