Open Season initiated for Canadian Mainline

Kallanish Energy reported that Enbridge has announced an open season to solicit transportation services on the Canadian Mainline pipeline system. The open season is to provide shippers with the opportunity to enter into long-term contracts for priority transportation service on the Mainline.

The Mainline system was a common carrier system in which shippers submit monthly bids for capacity, but Enbridge is converting it to one that is mostly contracted for up to 20 years. At least 10% of capacity will remain reserved for uncommitted volumes at all times.

The open season started on August 2nd and will end on October 2nd. Subject to regulatory approval, Enbridge is seeking to have Canadian Mainline contracting take effect on July 1, 2021. The system exceeds 3,100 miles in length including multiple paths. More than 1,900 miles of the system is in the U.S., while the rest is in Canada and serves the Western Canada oil sands.

Mainline’s crude-carrying capacity will be 3.23 million barrels per day, following completion of the Line 3 Replacement project. The company will be contracting 2.9 million barrels per day and the remaining 325,000 barrels per day will remain in spot service.

Source:
kallanishenergy