More than two dozen Canadian oil producers have filed comments with the Canada Energy Regulator on Enbridge’s plan to revise its shipping contracts on the Mainline pipeline system, Kallanish Energy has learned.
The Mainline is North America’s largest pipeline system, shipping around 3 million barrels per day of crude from western Canada to the U.S. Midwest.
Enbridge currently allocates capacity based on monthly nominations from shippers, but is proposing to switch to long-term fixed-volume contracts.
The company launched a two-month open season to solicit bids for space on Aug. 2. It faces stiff opposition from many Canadian producers, who say the tolls are unfair and the changes will limit their access to markets.
After complaints from some companies, the Canada Energy Regulator (Cer) said it would hold a fast-track process to gather comments.
Most responses came from parties in favor of the regulator intervening before the end of the open season, Reuters reported.
The Cer is requesting comment on whether it should consider the terms and tolls offered by Enbridge before, instead of after, the end of the open season, and whether the open season should be delayed, it said..
Enbridge has been negotiating with shippers for months, but the terms of such contracts have remained secret.
The company has until Sept. 11 to respond to the Cer.
It issued its own statement last Thursday, defending what it is doing.
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