Enbridge announces tolling agreement in principle on Mainline liquids system
Enbridge Inc. announced that it has reached an agreement in principle on a negotiated settlement (the settlement) with shippers for incentive tolls on its Mainline liquids system, which moves over 3 million barrels a day of crude oil and liquids from Western Canada to demand markets in multiple provinces and states.
The settlement covers both the Canadian and U.S. portions of the Mainline and will provide customers with a stable, competitive toll relative to competing alternatives. In addition, the settlement will preserve high utilization of the Mainline, and incentivize Enbridge to maximize capacity, benefiting industry egress and customer netbacks. The settlement term is 7.5 years through 2028.
“This settlement continues with Enbridge’s track record of working cooperatively with shippers, and industry groups, and builds on a 27-year history of similar incentive deals on the Mainline itself,” said Colin Gruending, Enbridge’s Executive Vice President and President of Liquids Pipelines. “This settlement is a win-win-win – customers will continue to receive competitive and responsive service; Enbridge will earn attractive risk-adjusted returns; and the Mainline will continue to feed North America and global markets with a long-term source of safe, secure, and affordable energy.”
The settlement has been approved by the Enbridge Board of Directors and received overwhelming support from a 37-member industry stakeholder group that includes producers, refiners, integrated companies, industry agencies, and governments.
As part of the settlement, Enbridge will be filing new interim tolls for local Canadian crude movements and cross-border international joint toll deliveries to take effect on July 1, 2023. The settlement also eliminates the need to complete its previously filed Lakehead cost of service application, currently before the United States’ Federal Energy Regulatory Commission.
Enbridge expects to jointly finalize the settlement with industry and submit an application for its approval to the Canada Energy Regulator in Q3 2023, with the expectation that the new tolling settlement could be approved and implemented later this year.
Information Source: Read More “
Energy Monitors , Electric Power , Natural Gas , Oil , Climate , Renewable , Wind , Transition , LPG , Solar , Electric , Biomass , Sustainability , Oil Price , Electric Vehicles,
