Enbridge Reduces Supply on Vital Canadian Pipeline System
(P&GJ) — The biggest operator of oil export pipeline systems in the world, Enbridge Inc., is reducing supply on its vital Canada line, creating yet another barrier for oil producers, Bloomberg reported.
Enbridge, a Calgary-based firm, said in a statement on Friday that it will allot space on a section of its Mainline system by the most since November of last year. Historically, a glut of supply has resulted from shippers reducing capacity when they perceive excessive demand on a system, leaving producers with the extra. This practice is known as apportionment.
The allocation of pipelines has already resulted in significant discounts for Canadian crude oil and now poses a danger to already low oil prices. With the release of high-sulfur oil from US strategic petroleum reserves and high natural gas prices making Canadian oil expensive to refine, the discount for Canadian heavy crude is about $30 in Alberta, practically the biggest since 2018.
The increase in allocation suggests that export lines may be beginning to fill up once more as a result of the province's record oil production and the increased demand for Canadian petroleum on the U.S. Gulf Coast.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments