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.
Recommended Reading
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.