Page 8 - NorthAmOil Week 07 2023

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Enbridge targets higher volumes

on Canadian Mainline in 2023

CANADA CALGARY-BASED Enbridge is expecting he did not divulge further details for commercial
higher throughput volumes on its Canadian reasons. “These discussions take time,” he said,
Mainline system in 2023 compared with the pre- adding that Enbridge was factoring in the impact
vious year. This is expected as incremental heavy of the planned start-up of the Trans Mountain
oil barrels are produced in the Western Canadian pipeline expansion, which will provide shippers
Sedimentary Basin (WCSB), Enbridge’s CEO, with an alternate route out of the WCSB.
Greg Ebel, told analysts on an earnings call. The Trans Mountain expansion is targeted to
“Our Mainline is running full and average be in service in late 2023 and will move an addi-
throughput was 2.96mn bpd [barrels per day] tional 590,000 bpd of crude from the Edmonton
in 2022,” Ebel said. “In January and February we hub to Burnaby, British Columbia, on the Cana-
will exceed that as we hustle to move every barrel dian Pacific Coast. On top of
we can from the basin.” “We expect the Mainline will remain well
The pipeline operator anticipates WCSB out- utilised once [the Trans Mountain expansion] providing
put growing between now and 2030, and “as the is in service,” Ebel said. “We are talking to our
basin grows our system will fill back up,” he said, shippers about the expansion and its impact additional
without giving any figures. will be accounted for in the commercial tolling
An independent report issued in late Decem- outcome.” capacity, the
ber by S&P Global Commodity Insights pro- Land-locked Western Canadian producers pipeline operator
jected that Canadian crude and condensate are expected to seek opportunities to ship their
output would rise from 4.4mn bpd in 2022 to crude to markets through both the Mainline and is also in talks
4.9mn bpd in 2030. Trans Mountain expansion in order to overcome
The Mainline system, which is over 3,000 negative price differentials and ensure a higher with its shippers
miles (4,828 km) in length, ships Canadian rate of return on their investment.
heavy and light barrels from Edmonton to Western Canadian oil sands, heavy and light over new tolling
Gretna on the Canadian-US border. From there, oil producers alike are awaiting the start-up of agreements.
the volumes flow onto Enbridge’s Lakehead sys- Trans Mountain expansion.
tem, which supplies crude to refineries in the “We stand to benefit from improved and sta-
Midwest and US Gulf Coast regions. ble Western Canadian Select pricing and also
On top of providing additional capacity, the it complements our strong Gulf Coast pricing
pipeline operator is also in talks with its shippers from our Eagle Ford operations and our light oil
over new tolling agreements that include two production in Western Canada,” Baytex Energy’s
options – a new incentive rate-making deal or vice president for capital markets, Brian Ector,
a cost-of-service application, Ebel said, though said separately in an email.™

P8 www. NEWSBASE .com Week 07 16•February•2023