Regulator Rejects Enbridge Plan to Sell Oil Pipeline Space under Contract

Enbridge planned to sell 90% of space under long-term contracts on the Mainline, Canada’s longest oil pipeline system which moves oil from Western Canada to refineries in Eastern Canada and the U.S. Midwest.

Rod Nickel, Reuters

The Canada Energy Regulator on Nov. 25 rejected Enbridge Inc.’s plan to sell nearly all space on its Mainline oil pipeline under long-term contracts, rather than rationing it on a monthly basis.

The regulator (CER) said in a written ruling that the change would have dramatically changed how shippers gain access to the 70-year-old Mainline, benefiting some with contracts while hurting others who lack them.

“Overall, Western Canadian oil producers could suffer too many negative consequences,” the CER said.

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