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Enbridge asks regulator not to intervene in Mainline allocation overhaul
NORTH AMERICA
PIPELINE operator Enbridge has asked the recently renamed Canada Energy Regulator (CER) not to intervene in its plan to overhaul capacity allocation on its Mainline system.
The written request to the CER came after some shippers on the Mainline complained to the regulator that the terms and tolls on offer in Enbridge’s current open season, urging it to intervene in the matter and delay the proposed changes. Capacity on the Mainline is currently allocated on a spot basis according to monthly nominations from shippers, but Enbridge is proposing to switch to long-term fixed-volume contracts on 90% of the system. In response to shipper complaints, the CER agreed to hold a fast-track process to gather comments on the matter, with 33 interested parties responding, of which 25 opposed the changes. Now Enbridge has hit back.
The pipeline operator argued in its filing that the requests to have its proposals postponed “have no basis in law and granting them would be unjust and unreasonable”. Enbridge also argued that based on volume of oil shipped on the Main- line, there was more support for the contracted
system than there was opposition to it.
The company also argued that of those 25 par- ties expressing opposition to the proposals, only eight are shippers on the Mainline. It added that the companies that had filed letters in support of its proposal account for roughly 30% of the volumes shipped on the Mainline, while those that had filed letters in opposition accounted for
20% of volumes.
Enbridge argued that the CER should avoid
taking the “unprecedented” step of intervening in a pipeline open season. It said that instead, the CER should hold a regulatory review of the terms and tolls offered once Enbridge makes a formal application at the end of the year, in line with usual practices.
While some shippers oppose Enbridge’s shift to a contract-based allocation system, the proposal has been welcomed by investors that consider monetising existing infrastructure to be a safer bet than trying to build new pipelines. Such investors view contracting out capacity as a way of locking in revenue amid uncertainty sur- rounding new pipeline projects such as Keystone XL and the Trans Mountain expansion.
EVX builds largest water- gathering system in Eagle Ford
TEXAS
Demand for wastewater-handling infrastructure is on the rise in the shale industry.
EVX Midstream Partners announced on Sep- tember 11 that it had “significantly completed” the first phase of its water-gathering system in the Eagle Ford shale play in Texas. The system is being touted by the company as the largest in the play for gathering oilfield wastewater.
“EVX is positioned to be the largest gath- erer of produced water in the Eagle Ford Basin,” EVX’s CEO, Herb Chambers, said in a statement. “We have recently completed over 300 miles [483 km] of large-diameter water-gathering systems and have pipe-connected many of our 20-plus saltwater disposal wells to provide our producer customers and trucking companies unprece- dented operational flexibility.”
Demand for wastewater-handling infra- structure is on the rise in the shale industry, which uses large quantities of water in the hydraulic fracturing process. In addition to growing volumes of fracking wastewater, drill- ing also results in brackish water being brought to the surface alongside the hydrocarbons
being targeted by producers.
Some of this wastewater can be recycled to be
used again in drilling and fracking, but most is pumped into saltwater disposal wells.
EVX owns and operates 26 such saltwater dis- posal wells in the Eagle Ford, and is authorised to inject up to 600,000 barrels per day (bpd) of wastewater into them. Progress on the compa- ny’s gathering system comes as trucks used for transporting this water are being increasingly replaced by pipelines.
In the same statement, EVX said it had recently closed on a new revolving credit facil- ity at its affiliate, EVX Eagle Ford Partners. “We appreciate the commitments from our financial partners which support EVX’s ongoing growth in a sustainable and cost-effective manner,” EVX’s chief financial officer, Brian Kellar, said. “Our most recent financing allowed us to expand our lender base, bringing in new financial part- ners to support our continued expansion in South Texas.”
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w w w . N E W S B A S E . c o m Week 37 17•September•2019
