Enbridge to transport oil from Athabasca's Hangingstone oilsands project

CALGARY – Enbridge Inc. says it will spend about $200 million to transport crude from Athabasca Oil Corp.’s (TSX:ATH) Hangingstone project in northern Alberta.

It’s the ninth oilsands project to be connected to Enbridge’s (TSX:ENB) regional system.

Enbridge will build a new 50-kilometre pipeline between the Hangingstone project and its Cheecham terminal, which will be modified to support increased production.

The line will have an initial capacity of 16,000 barrels per day, and may be expanded another 60,000 barrels from the second phase of Hangingstone.

Enbridge intends to file a regulatory application in May, with the pipeline expected to be up and running in the second half of 2015.

The initial term of the agreement between Enbridge and Athabasca is 25 years, but it may be extended in five-year increments to a total of 45 years.