Enbridge Inc. announced in a May 4 press release that it has reached an agreement with shippers regarding incentive tolls on its Mainline liquids system.
At present, the Mainline system transports over 3 million barrels per day (MMbbl/d) of crude oil and liquids from Western Canada to demand markets in both the U.S. and Canada.
The agreement seeks to provide customers with a stable toll preferable to competitors. It will not only preserve high utilization of the Mainline system, but will also incentivize Enbridge to maximize its capacity. The agreement will span 7.5 years and will last through 2028.
Enbridge will now be filing new interim tolls for local Canadian crude movements and cross-border international joint toll deliveries, which will take effect on July 1, according to the release.
This deal is business as usual for Enbridge and continues the company’s trajectory over the last 27 years in operations, 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,” said Gruending.
Enbridge is an energy delivery company based in Calgary, Canada. It has an established presence in North America, and now Europe.
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