Midstream - Pipelines | Government & Regulatory
Canadian Operators Push Back Against Proposted Enbridge Mainline Changes
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Enbridge Inc. is encountering pushback on its plans to overhaul its shipping contracts on its Mainline Pipeline, according to a report by Reuters.
Under the proposal, Enbridge is hoping to switch to long-term fixed volume contracts (the pipeline currently runs on monthly nominations). Several Canadian operators have asserted that this change would impose unfair tolls and limit market access, with Canadian Natural Resources Ltd. (CNRL) and Suncor being two main critics of the plan.
Given the controversy, the Canadian Energy Regulator has gotten involved in the fray, giving affected companies a chance to comment on the developments.
The Mainline Pipeline is the largest pipeline in North America - with a capacity of ~3.0 million BPD, it serves many operators active in the US and Canada.
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