Enbridge Will not Ration Mainline Deliveries as Oil Cuts Mount
TORONTO (Reuters) — Pipeline operator Enbridge Inc said on Monday it would not ration May deliveries on North America’s biggest oil pipeline network, the Mainline, as Canada’s oil producers step up production curtailments to cope with low prices.
The notice by Enbridge shows pipeline congestion that has played a role in the deep discounting of Canadian crude is easing as producers shut in production to cope with plunging demand for crude caused by the coronavirus outbreak.
Enbridge’s Mainline has capacity for 3 million barrels a day moving western Canadian oil to U.S. refiners. The pipeline has been regularly oversubscribed in recent years, forcing Enbridge to ration the number of barrels each shipper can move.
Shipping constraints have eased, however, as oil sands producers have turned down an estimated 300,000 barrels per day of output, primarily at steam-driven extraction sites.
Enbridge said earlier this month it was running the Mainline with unused capacity and that some 20% to 25% of Western Canada’s oil production could be shut in during the second quarter.
Husky Energy Inc and Crescent Point Energy Corp on Monday cut spending and production, days after Canada’s federal government offered financial relief to the hard-hit sector.
Related News
Related News

- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- 208-Mile Mississippi-to-Alabama Gas Pipeline Moves Into FERC Review
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments