Enbridge Inc (Canada) could add 200 000 bpd of capacity to its 3 million bpd Mainline system, which ships the bulk of Canada's crude exports to the USA, Reuters reported.
However, Marc Weil, a Senior Vice President in the company’s Liquids Pipelines business stated that the Canadian government-owned Trans Mountain expansion (TMX) project must start operating before Enbridge look to proceed with the expansion.
Once complete, TMX – which will compete with the Mainline – will add another 590 000 bpd of pipeline capacity to Canada’s Pacific Coast. However, due to a last-minute route deviation request in British Columbia, the long overdue project which was set to start operating in 1Q24 is facing further delays.
"Obviously industry would like to see TMX come online and see how that shakes out," Weil said.
"Once that happens, we do have some additional egress options for the basin and we think that at the right point in time, [producers] will be looking for some additional insurance and we'd be engaging in talks with them at that point."
Western Canada will have more export capacity than it needs once TMX starts operating and so in anticipation of the extra pipeline space, oil companies are already increasing production.
Weil said the longer TMX is delayed, the higher the chance western Canadian export pipelines could hit capacity, adding that Enbridge’s Mainline is already essentially full.
The amount of crude shippers can transport on the system will have to be rationed in October because demand to move oil exceeds available capacity, the company has said. Light crude volumes will be apportioned by 7% and heavy volumes by 10%.
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Read the article online at: https://www.worldpipelines.com/business-news/20092023/canadas-enbridge-anticipating-expansion/
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