BP, Enbridge Agrees To Install Crude Oil Line From Illinois To Texas

Calgary, Alberta (AHN) - BP Plc and Enbridge Inc., Canada's largest oil pipeline company, has agreed to install a transcontinental pipeline that would deliver crude oil from Western Canada oilsands to the United States' Gulf Coast.

The multi-billion joint project, which is estimated to cost between $1 billion to $2 billion, will run from Flanagan, Illinois to Houston and Texas City, Texas.

The project will use existing facilities as well as the construction of new pipelines. BP pipelines north of Cushing, Oklahoma will be connected to Houston and Nederland, Texas through new pipelines to be built south of Cushing.

The pipeline is targeted to start operations by late 2012 and it will have a delivery capacity of 250,000 barrels daily.

The deal is subject to the completion of final agreements as well as regulatory approvals.

Oil will be supplied by Alberta oilsands, which is expected to increase to 2.77 million barrels a day by 2015. As of 2007, the Canadian province pumps 1.2 million barrels.