Page 4 - NorthAmOil Week 11 2021

NorthAmOil COMMENTARY NorthAmOil

Fight over Line 5

pipeline intensifies

Enbridge has asked the Canadian government

for support in its legal battle with the State of

Michigan over the Line 5 pipeline

NORTH AMERICA THE battle over Enbridge’s Line 5 pipeline, half of Michigan’s propane demand.
which carries oil and natural gas liquids (NGLs) Yu previously accused the State of Michigan
WHAT: from Wisconsin to Ontario via Michigan, is of failing to acknowledge the impact of shutting
Enbridge has called on intensifying. down Line 5, or the fact that there are no clear
the Canadian government Michigan Governor Gretchen Whitmer has alternatives to the pipeline.
to provide support for ordered the pipeline to be shut down by mid-
its federal court filings May, claiming that Enbridge had violated the Pipeline politics
related to Line 5. terms of a permit issued in 1953, which allowed The federal governments in both Canada and the
the pipeline to operate in the Straits of Mack- US want to reduce their countries’ dependence
WHY: inac. In January, Enbridge said it would con- on fossil fuels. However, the recent winter storm,
The company is test Whitmer’s order, arguing that Michigan’s and particularly its impact on Texas, illustrated
embroiled in a battle with government lacked the authority to revoke the that this cannot be done easily, and that major
Michigan, which wants to easement. And without a court injunction, the disruption can occur if there are significant out-
shut down the pipeline. pipeline cannot be shut down. ages. And while new US President Joe Biden has
This week, the company stepped up its efforts been keen to make decarbonisation a priority
WHAT NEXT: to keep Line 5 operating, calling on the Cana- since taking office in January, Canadian Prime
Enbridge has warned dian government for support as cross-border Minister Justin Trudeau has spent his time in
that shutting down Line pipelines are a national issue, and saying it office trying to strike a balance – not always
5 would have severe hoped for a negotiated solution to the dispute. successfully – between reducing emissions
implications, and is trying Enbridge has also warned of extensive disrup- and supporting his country’s energy industry.
to reach a negotiated tion if the 540,000 barrel per day (bpd) pipeline Indeed, the Canadian government has already
solution. is shut down. Enbridge’s executive vice-presi- said it would look at all options to help keep Line
dent, Vern Yu, told a parliamentary committee 5 operating, including invoking the 1977 Transit
in Canada this week that shutting Line 5 would Pipelines Treaty.
trigger major energy supply disruptions on both The support for Line 5 comes in the wake
sides of the border. These could include refiners of Biden’s decision to revoke the presidential
facing shortages of feedstock and propane prices cross-border permit for the Keystone XL pipe-
rising in the region. Line 5 supplies more than line, which he did immediately upon taking

P4 www. NEWSBASE .com Week 11 18•March•2021