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

Minnesota PUC Confirms Enbridge Energy's Line 3 Pipeline Approval

Enbridge Energy's proposed $7 billion Line 3 crude oil pipeline replacement gets final approval from Minnesota Public Utilities Commission, the company said on Wednesday. The PUC unanimously rejected the last pending petitions for reconsideration, including one from the state Commerce Department.

“The PUC confirmed its decision to approve the conditions placed on L3R’s (Line 3 Replacement) Certificate of Need – conditions meant to protect Minnesotans – allowing this critical energy infrastructure modernization project to move forward,” Enbridge said in a statement.

Since 1960s, Line 3 has carried Canadian crude from Alberta to Wisconsin and is currently operating at half its capacity. The Line 3 replacement would allow it to return to approved capacity of 760,000 barrels per day.

The PUC initially approved Enbridge’s plan to rebuild the aging 1,031-mile pipeline in June, but that decision was challenged by Minnesota’s governor in February.

The new line would cross Alberta, a corner of North Dakota and northern Minnesota to an Enbridge terminal in Superior, Wisconsin. Besides clearing the legal challenges, Calgary-based Enbridge also needs state and federal permits, which the company hopes to secure around end of the year.

Sources:
chron
reuters

Enbridge's Line 3 Pipeline Opening Delayed in Minnesota

The startup plans of Line 3 replacement crude oil pipeline through northern Minnesota by the Canadian-based Enbridge Energy is delayed by a year, the company said on Friday. The company now expects the new pipeline to go into service in the second half of 2020.

The project was approved last summer by the state’s Public Utilities Commission and the initial plan was to put the pipeline into service in the second half of 2019.

But the Minnesota Department of Commerce argued that Enbridge failed to provide legally adequate long-range demand forecasts to establish that is needed.

Minnesota Gov. Tim Walz recently said his administration will keep pursuing an appeal of an independent regulatory commission's approval of Enbridge's plan.

According to Enbridge Energy, Line 3 is increasingly prone to cracking and corrosion, and wants to be replaced. But the Native American and environmental activists argue the project risks spills in pristine areas.

Source:
abcnews

Enbridge Seeking Permits for Largest Project in Company History

Map of proposed Line 3 Replacement Program ( Enbridge )

Map of proposed Line 3 Replacement Program (Enbridge)

Enbridge is working on seeking state permits for its Line 3 Replacement Program, a project the company calls "the largest project in Enbridge history," with a length of 1,031 miles and an approximate cost of $7.5 billion.

The project consists of constructing an oil pipeline that would travel from Alberta's tar sands to Enbridge's terminal in Superior, Minnesota. It would almost totally replace Enbridge's current Line 3 pipeline that company spokesman Shannon Gustafson says "has experienced external corrosion inherent and common in the pipe coatings used at the time the pipeline was constructed in the early 1960s."

"Line 3 is a replacement project intended to upgrade and improve the pipeline while restoring capacity to its original volume to meet the demands of refineries in Minnesota and the Midwest," said Gustafson.

Because the current line would require heavy maintenance to maintain safe operations, Enbridge concluded it would be more cost-effective to construct a new pipeline and decommission the old one, which Enbridge says will largely be left in the ground.

Environmental opposition is growing against the project, with protestors demanding the old pipe be taken out of the ground. Other opponents claim the new project would destroy land, violate tribes' treaty rights, and contaminate water supply.

The project is awaiting permits from the Minnesota Public Utilities Commission and must complete a full environmental review. Assuming all regulatory approvals go as planned, Enbridge estimates the Line 3 replacement will be online in 2019.

Source:
Enbridge
WDAZ News