Enbridge Cuts Rates to Compete with New Trans Mountain Oil Route
(P&GJ) — According to the Financial Post, Enbridge Inc. has reduced tolls on its Canadian oil export pipelines in response to heightened competition from a newly operational pipeline linking Alberta to Vancouver.
The toll for transporting heavy crude from Hardisty, Alberta, to Texas has been lowered to $9.4877 per barrel from the previous rate of $10.7006 per barrel, according to the Financial Post.
This adjustment comes after the launch of the expanded Trans Mountain pipeline system, known as TMX, which can now transport up to 890,000 barrels of oil per day to the British Columbia coast. From there, the oil is primarily shipped to markets on the U.S. West Coast and in Asia.
For years, Canadian oil producers faced a shortage of export capacity, but the TMX expansion has now provided ample pipeline options. As a result, companies can choose to route oil through TMX rather than relying on Enbridge’s network.
This shift has led to a significant drop in apportionment—a system of rationing pipeline space—on Enbridge’s Mainline system, which runs from Alberta to the U.S. Midwest. Apportionment has decreased from over 20% in March to zero for September, following the commencement of TMX in May.
Enbridge CEO Greg Ebel told the Financial Post that the lack of apportionment is typical for this season. He also mentioned that the company anticipates transporting around three million barrels of oil per day throughout the year. Ebel highlighted that Enbridge’s pipelines connect to 75% of U.S. refineries, offering broader market access compared to the TMX, which primarily serves a single market.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments