Canadian pipeline giant Enbridge has initiated an open season for transportation services on the Canadian Mainline pipeline system, Kallanish Energy reports.
The Canadian Mainline is a common carrier pipeline system with 100% of its transportation capacity currently available to shippers on a spot, or uncommitted, basis.
The Competitive Tolling Settlement (Cts) that governs transportation tolls on the Mainline will expire on June 30, 2021. In advance of said expiration, Enbridge has been negotiating with its shippers and is holding an open season to provide shippers with the opportunity to enter into long-term contracts for priority transportation service on the Mainline.
Enbridge is converting the Mainline system from a common carrier system in which shippers submit monthly bids for capacity, to one that is mostly contracted for up to 20 years. At least 10% of capacity will remain reserved for uncommitted volumes at all times.
Following completion of the Line 3 Replacement project, Mainline’s crude-carrying capacity will be 3.23 million barrels per day (Mmbpd), of which up to 2.9 Mmbpd will be contracted. The remaining 325,000 Bpd will remain in spot service.
The open season began Aug. 2, and ends Oct. 2. Enbridge is seeking to have Canadian Mainline contracting take effect on July 1, 2021, subject to regulatory approval.
The system exceeds 3,100 miles in length including multiple paths. More than 1,900 miles of the system is in the U.S., while the rest is in Canada and serves the Western Canada oil sands.
The entire system originates in Hardisty, Alberta, and splits at Superior, Wisconsin, with one shoot heading farther east to Sarnia, Ontario, and the other turning south to Flanagan, Illinois, south of Chicago.
This post appeared first on Kallanish Energy News.