Canadian regulator rejects Enbridge plan to contract oil pipeline space (updated)

Canada Energy Partners

26/11/2021 21:42

(Adds regulator's reasons, background)
    By Rod Nickel
    WINNIPEG, Manitoba, Nov 26 (Reuters) - The Canada Energy
Regulator on Friday rejected Enbridge Inc's  ENB.TO  plan to
sell 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 access to the Mainline,
benefiting some shippers while costing others' access.
    Enbridge planned to sell 90% of space under long-term
contracts to shippers on the 3 million barrel per day Mainline,
Canada's longest oil pipeline system. The proposal divided the
oil patch.
    Enbridge applied for the change in 2019 when demand for the
Mainline exceeded its capacity. That congestion has eased with
Enbridge's replacement of its Line 3 pipeline, part of the
Mainline network.

 (Reporting by Rod Nickel in Winnipeg and Ismail Shakil in
Bengaluru
Editing by Matthew Lewis)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;
1-204-230-6043;))