{"id":34097,"date":"2023-05-04T16:34:31","date_gmt":"2023-05-04T16:34:31","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/enbridge-reaches-toll-agreement\/"},"modified":"2023-05-04T16:37:06","modified_gmt":"2023-05-04T16:37:06","slug":"canadas-enbridge-reaches-mainline","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/canadas-enbridge-reaches-mainline\/","title":{"rendered":"Canada’s Enbridge reaches Mainline toll agreement with oil shippers"},"content":{"rendered":"

By Rod Nickel and Sourasis Bose<\/p>\n

(Reuters) -Canada’s Enbridge Inc said on Thursday it has reached a toll agreement with oil shippers for its Mainline crude pipeline system, one of North America’s biggest, after scrapping earlier plans for long-term contracts.<\/p>\n

The agreement, which will last through 2028 and requires Canadian regulatory approval, covers tolls charged on both the U.S. and Canadian portions of Enbridge’s Mainline, which moves 3 million barrels a day from Western Canada to refineries in Eastern Canada and the U.S. Midwest. If approved, Enbridge would continue to ration space on an open-access, monthly basis.<\/p>\n

The new toll is lower than the previous one, making Canadian oil more competitive, said Colin Gruending, president of Enbridge’s liquids pipelines segment.<\/p>\n

Scotiabank analyst Robert Hope said the settlement removes uncertainty that has weighed on Enbridge shares. The stock edged higher on the Toronto Stock Exchange on Thursday.<\/p>\n

Enbridge spent years trying to convince shippers and then the Canada Energy Regulator (CER) to allow it to sell space on the Mainline under long-term contracts. Some oil producers, like Canadian Natural Resources Ltd (CNRL), objected and the CER rejected the plan in 2021. <\/p>\n

“It’s positive,” said CNRL President Tim McKay of the new deal. “The parties got together and agreed on a fair tolling agreement.”<\/p>\n

The Calgary-based company’s rival, Canadian government-owned Trans Mountain, expects to complete expansion of its pipeline late this year and has sold 80% of that space under contract, giving it security during periods of spare capacity.<\/p>\n

As a result, the Mainline’s utilization rate may drop to 95% from full, but expanding oil production and the Mainline’s lower toll compared to Trans Mountain’s will soon refill it, Gruending said.<\/p>\n

Enbridge expects to apply for approval to the CER in early fall, with the expectation that the settlement could be approved and implemented this year. The agreement covers 70% of Mainline deliveries, with the remaining 30% covered by a pre-existing agreement.<\/p>\n

(Reporting by Rod Nickel in Winnipeg, Manitoba and Sourasis Bose in Bengaluru; additional reporting by Nia Williams in British Columbia; Editing by Dhanya Ann Thoppil, Shounak Dasgupta and Paul Simao)<\/p>\n

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By Rod Nickel and Sourasis Bose (Reuters) -Canada’s Enbridge Inc said on Thursday it has reached a toll agreement with oil shippers for its Mainline crude pipeline system, one of North America’s biggest, after scrapping earlier plans for long-term contracts. The agreement, which will last through 2028 and requires Canadian regulatory approval, covers tolls charged […]<\/p>\n","protected":false},"author":8,"featured_media":34098,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-34097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430GF-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34097"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34097\/revisions"}],"predecessor-version":[{"id":34491,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34097\/revisions\/34491"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/34098"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34097"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}