United Refining, Enbridge strike cost-sharing deal for crude pipeline

NEW YORK, N.Y. – Enbridge Pipelines Inc. (TSX:ENB) and United Refining Co. have reached an agreement for the Line 10 pipeline that carries Canadian crude through Ontario’s Niagara Region to a connection near Buffalo, N.Y.

United Refining announced Tuesday that the multi-year cost-sharing and operations agreement could see ownership of Line 10 be transferred to URC in about 11 years.

In the meantime, Enbridge and its U.S. affiliate Enbridge Energy LP would operate the line. In addition, Enbridge and United Refining would each spend about $135 million over five or six years to replace segments of Line 10 starting next year.

Line 10 is part of a pipeline system that supplies crude to URC’s refinery in Warren, Penn. It begins near Hamilton and connects to URC’s Kiantone pipeline in West Seneca, N.Y.

Approximately 32 kilometres of pipeline will be swapped out, beginning in Westover, near Hamilton.

The Calgary-based pipeline company says it is preparing the appropriate regulatory filings and will begin engaging community stakeholders, although it couldn’t provide a timeline.

“It has been well maintained and has had good performance,” Enbridge spokesperson Kristen Higgins said from Calgary.

Line 10 is capable of transporting up to 75,000 barrels of crude a day. Designed in 1962, it moves a mix of light to heavy crude.