It took a while, but Enbridge and shippers on its 3.2-MMb/d Mainline system have finally reached an agreement in principle on a new tolling agreement that will lower per-barrel rates on the mammoth crude oil pipeline network between Western Canada and the U.S. Midwest — and also help ensure that Enbridge will earn a healthy rate of return on its largest asset. Assuming the Mainline Tolling Agreement (MTA) is approved by Canadian regulators later this year (and that’s seems to be a safe bet), the new rate structure should also help the Mainline system retain the vast majority of its crude volumes, even as it faces new competition from the Trans Mountain Expansion (TMX) project, which will provide 590 Mb/d of additional pipeline capacity from Edmonton, AB, to the British Columbia (BC) coast starting sometime next year. In today’s RBN blog, we discuss the MTA and what it means for Enbridge, shippers and TMX.
Locked In – Enbridge Poised for Success Following Mainline Tariff Settlement as TMX Startup Looms
