Canada’s leading energy regulator is Enbridge Inc, which will fill its mainline pipeline network through long-term contracts. Rejected the proposal.
The Calgary-based pipeline giant has applied for a long-term contract for 90% of the capacity of the mainline system.
Pipeline demand has exceeded capacity in the last few years. Embridge argued that a solid contract would give customers more predictable access to the pipeline.
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However, some Canadian oil producers argued that the proposed changes could exacerbate existing capacity constraints and lead to lower oil prices.
Canada’s energy regulators have concluded that Embridge’s proposal will dramatically change access to the pipeline. Some companies will benefit from long-term stability, while others will lose access to the pipeline, he said.
Enbridge’s Mainline is Canada’s largest oil pipeline system, delivering over 3 million barrels of petroleum products per day to the market. The pipeline provides approximately 70 percent of the total oil pipeline transport capacity from Western Canada.
© 2021 The Canadian Press
Regulatory rejects Embridge’s mainline pipeline system contract proposal
Source link Regulatory rejects Embridge’s mainline pipeline system contract proposal