Canadian lawmakers on April 15 urged the leaders of the United States and Canada to take further steps to resolve a dispute between Enbridge Inc. and the state of Michigan over the cross-border Line 5 oil pipeline.
Michigan Gov. Gretchen Whitmer has ordered Calgary-based Enbridge to shut down a 4-mile section of the 540,000 barrel-per-day pipeline that runs underneath the Straits of Mackinac in the Great Lakes by May 12, because of concerns it could leak.
Enbridge is challenging Whitmer's order in U.S. courts.
Following weeks of hearings from ministers, unions and industry associations, a multi-party committee of Canadian parliamentarians released their recommendations in a report that said shutting down Line 5 could lead to fuel shortages and job losses on both sides of the border.
“The Special Committee feels that continued engagement between the governments of Canada and the United States is critically important to the continued operation of Line 5,” the report said.
It recommended Prime Minister Justin Trudeau and his ministers pursue “frequent and direct dialogue” about Line 5 with President Joe Biden and his administration, to help resolve the dispute diplomatically as soon as possible.
Failing that, Canada may take legal action or intervene in the federal court case between Enbridge and Michigan, the committee said, although it emphasized a negotiated settlement between the two parties would be best.
The report comes a day before Enbridge and Michigan begin mediation, as ordered by a judge.
“We concur fully with the findings of the report, most importantly on the need to resolve the current dispute through executive action and state-to-state negotiation,” said Vern Yu, Enbridge’s executive vice president of liquids pipelines.
Recommended Reading
EQT Closes $5.45B Acquisition of Equitrans Midstream
2024-07-22 - In addition to integrating Equistrans’ midstream assets, EQT will focus on reducing the infrastructure company’s debt of between $7.6 billion and $8 billion. Including equity and debt, the deal is valued at roughly $13 billion.
Emera to Sell New Mexico Natural Gas Co. to Bernhard for $750MM
2024-08-06 - Bernhard Capital Partners, which recently purchased CenterPoint Energy assets, will buy utility New Mexico Gas Co. from Emera for $1.25 billion, including debt.
Shell Sells Pipeline, Terminal Assets to Edgewater Midstream
2024-08-29 - Shell is selling its Sinco pipeline system and Colex terminal assets that have been historically integrated with the Deer Park Refinery, which Shell sold to Pemex in 2022.
Vivakor to Acquire Endeavor Crude Transport Cos. for $120MM
2024-09-25 - Vivakor said it is buying Endeavor Crude and related companies, which have a series of long-term strategic partnerships with customers in the Permian Basin, Eagle Ford Shale and the STACK play.
‘Knife Fight’ for NGLs Driving Midstream Mergers in 2024
2024-09-05 - The latest acquisitions in the midstream sector are focusing on natural gas gathering and processing to secure a spot in the lucrative NGL market.