A Canadian trade group has filed a protest against Enbridge Inc.’s proposal to convert its Mainline system to serve a limited number of customers.
“If approved, it will reduce market optionality for Canadian producers, transfer pricing power to downstream buyers, depress prices for upstream producers and impair the viability of future investment,” Explorers and Producers Association of Canada warned in its filing with the Canada Energy Regulator (CER).
The proposal has created a conflict between U.S. refiners that stand to gain from the conversion and Canadian producers, Natural Gas Intelligence reported. Mainline’s capacity is 3 million barrels of oil a day.
Enbridge filed its proposal with CER in December 2019. It would allow shippers on the 70-year-old pipeline system to contract for priority access on 90% of capacity with the company reserving 10% for shipments of spot or uncommitted volumes of crude. The tolling agreement now in place is set to expire on June 30, 2021.
Enbridge indicated in its filing that the new agreement would not go into effect until the Line 3 Replacement Project goes into service. The project recently received its final permit approval from a Minnesota agency.
Recommended Reading
Williams to Invest $1.6B for On-Site Power Project with Mystery Company
2025-03-07 - Williams Cos. did not name the customer or the location of the power project in a regulatory filing.
FERC Reinstates Permit for Williams’ Mid-Atlantic Project
2025-01-27 - The Federal Energy Regulatory Commission’s latest move allows Williams’ Transco natural gas network to continue operations after a D.C. court shot down the expansion plan.
Williams Commissions Two NatGas Projects to Expand Transco Network
2025-04-01 - Midstream company Williams Cos. added to its network capacity in the southern U.S. with the commissioning of the Southeast Energy Connector and the Texas to Louisiana Energy Pathway.
Williams’ CEO: Pipeline Permitting Costs Twice as Much as Steel
2025-03-12 - Williams Cos. CEO Alan Armstrong said U.S. states with friendlier permitting polices, including Texas, Louisiana and Wyoming, have a major advantage as AI infrastructure develops.
DC Circuit Denies Rehearing for Williams’ Mid-Atlantic Project
2025-01-23 - Williams Cos.’ Regional Energy Access will continue operating as the midstream company seeks an emergency FERC certificate to keep supplying natural gas to Pennsylvania, New Jersey and Maryland.