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UPDATE 1-Canadian regulator rejects Enbridge plan to contract oil pipeline space

reuters ·  Nov 27, 2021 05:44

(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;))

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