Enbridge Reaches Agreement on Fee System for Mainline Pipelines

The Canadian pipeline operator Enbridge has concluded a fee agreement with oil shippers for its Mainline crude oil system. After a previous proposal for long-term contracts was rejected by oil producers such as Canadian Natural Resources in 2021, Enbridge has now managed to reach an agreement. This agreement regulates the fees for both the American and Canadian sections of the Mainline crude oil system. The pipeline system transports nearly three million barrels of oil per day from Western Canada to refineries in Eastern Canada and the Midwest USA. Colin Gruending, President of Liquids Pipelines at Enbridge, emphasized: “This agreement continues Enbridge’s tradition of collaboration with shippers and industry groups and is based on a 27-year history of similar incentive agreements on the Mainline. This agreement is a win for all involved: customers will continue to receive competitive and responsive service, Enbridge will achieve attractive, risk-adjusted returns, and the Mainline will provide North America and global markets with safe and affordable energy over the long term.” Enbridge's board of directors has approved the agreement. Additionally, the agreement received support from a 37-member industry expert group composed of producers, refiners, and integrated companies. Recently, Enbridge acquired a large underground natural gas storage facility in British Columbia from FortisBC for CAD 400 million (USD 295.5 million). In September 2022, Enbridge agreed to sell an 11.57% stake in seven pipelines in the Athabasca region in northern Alberta, Canada, to a group of 23 Indigenous communities in a deal worth CAD 1.12 billion.