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

Open Season Delayed for Mainline Oil Pipeline System

Three market sources told Reuters that Enbridge Inc., has delayed the start of an open season to solicit bids for contracted space on its Mainline oil pipeline system, North America's largest oil-shipping network. Although Enbridge said previously that the open season was meant to start in mid-July and last for two months, the reason for the delay was not immediately clear.

"We have been in discussions with interested shippers and are working to accommodate to their needs. We anticipate on holding the open season soon," Enbridge spokeswoman Tracie Kenyon said in an emailed statement when asked about the delay.

The Mainline system is a common carrier system in which shippers submit monthly bids for capacity, but Enbridge plans to turn that to one that is mostly contracted for up to two decades. By locking shippers into long-term contracts, Enbridge will have a chance to capitalize on delays to competitors' plans to build pipelines, and secure future cash flow at a time when anxiety about market access is dominating headlines.

Approval from Canada's National Energy Board regulator is needed for changes to the Mainline system and would take effect in 2021.

Source:
pgjonline