Enbridge to offer fuel capacity on Line 3 oil pipeline

CALGARY, Alberta - Sept 1 Reuters - Canadian pipeline operator Enbridge Inc notified oil shippers on Wednesday that it would offer capacity for 620,000 barrels of gasoline a day bpd on its Line 3 oil pipeline starting in October, signaling confidence in completing the long-delayed project.

The aging pipeline, which Enbridge is replacing, carries oil from Alberta to U.S. Midwest refiners. The replacement will eventually allow Enbridge to double capacity to 760,000 bpd.

Enbridge said in its announcement to shippers, seen by Reuters, that its planned capacity is subject to finishing construction activities to replace the aging line in Minnesota.

The initial capacity breaks down to 350,000 bpd for light crude and 270,000 bpd for heavy crude.

Two sources said line fill is expected to start as early as Sept. 15 and Canadian crude traders said price differentials were tightening in anticipation of extra capacity on Line 3.

Enbridge spokesperson Jesse Semko declined to comment on the shipper notice.

Line 3 is expected to be fully operational by 760,000 barrels of oil in the fourth quarter. We are not getting more specific at this time, he said in an email. Reporting by David Gregorio in Winnipeg and Rod Nickel in Calgary; Editing by Nia Williams in Calgary.