Enbridge to Provide Oil Storage on Canadian Mainline System
Enbridge and shippers have reached an agreement that will allow Enbridge to temporarily provide about 145,000 cubic meters of storage on the Canadian Mainline system for Mixed Sweet Blend crude, according to a May 1 filing with the Canadian Energy Regulator.
Oil producers of all sizes have been forced to make deep cost and production cuts to right-size following the latest oil price crash and plummeting fuel demand. The combination of gloomy market forces has resulted in worries that global storage levels are close to maxing out.
“Given the impacts of the pandemic and the collapse in crude oil prices, demand for incremental crude petroleum storage throughout North America and even more urgently in Western Canada is high,” the company said in the filing.
The Canadian Mainline stretches across the continent extending from the Alberta/Saskatchewan border east to the Quebec/Vermont border connecting with other natural gas pipelines in Canada and the United States. It currently has capacity for nearly 3 MMbbl/d.
The 8,762-mile pipeline connects natural gas supply from the WCSB and beyond with markets in central Canada and the northeastern United States.
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