Chinese Oil Giant Wins Case Against Canadian Pipeline Operator

Pembina Pipeline Corp. “unjustly discriminated” against a unit of China National Offshore Oil Corp. by blocking access to an oil terminal in Alberta, the Canada Energy Regulator ruled.

The ruling, issued Tuesday in Calgary, came after Cnooc Marketing Canada, which operates oil sands production wells in the province, filed a complaint last year. The unit of the Chinese oil giant said its rights were violated in 2021 when Pembina prevented it from shipping hydrocarbons from the Woodland Pipeline to a tank at the Edmonton Terminal that it subleased from Pembina. 

The Canadian pipeline operator had contravened CER rules by “refusing to provide the access requested by Cnooc,” the Chinese company said in its complaint.

Pipelines have often become focal points for conflict between energy companies in Alberta, where oil producers face a shortage of conduits for transporting crude and gas. Companies including Enbridge Inc. and TC Energy Corp. have been embroiled in regulatory disputes with firms that use their pipelines.  

The regulator said in its ruling that Pembina “did not provide persuasive evidence” of exclusive rights to connection facilities at the Edmonton Terminal. The CER directed Pembina to consent to the receipt, transportation and delivery of oil offered by Cnooc for transmission on the connection facilities.

Pembina and Cnooc didn’t immediately respond to emails seeking comment.