By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Stocks > Canada’s Enbridge reaches Mainline toll agreement with oil shippers
Stocks

Canada’s Enbridge reaches Mainline toll agreement with oil shippers

News Room
Last updated: 2023/05/05 at 2:23 AM
By News Room
Share
3 Min Read
SHARE

© Reuters. FILE PHOTO: Enbridge Inc logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By Rod Nickel and Sourasis Bose

(Reuters) -Canada’s Enbridge (NYSE:) Inc said on Thursday it has reached a toll agreement with oil shippers for its Mainline crude pipeline system, one of North America’s biggest, after scrapping earlier plans for long-term contracts.

The agreement, which will last through 2028 and requires Canadian regulatory approval, covers tolls charged on both the U.S. and Canadian portions of Enbridge’s Mainline, which moves 3 million barrels a day from Western Canada to refineries in Eastern Canada and the U.S. Midwest. If approved, Enbridge would continue to ration space on an open-access, monthly basis.

The new toll is lower than the previous one, making Canadian oil more competitive, said Colin Gruending, president of Enbridge’s liquids pipelines segment.

Scotiabank analyst Robert Hope said the settlement removes uncertainty that has weighed on Enbridge shares. The stock edged higher on the Toronto Stock Exchange on Thursday.

Enbridge spent years trying to convince shippers and then the Canada Energy Regulator (CER) to allow it to sell space on the Mainline under long-term contracts. Some oil producers, like Canadian Natural (NYSE:) Resources Ltd (CNRL), objected and the CER rejected the plan in 2021.

“It’s positive,” said CNRL President Tim McKay of the new deal. “The parties got together and agreed on a fair tolling agreement.”

The Calgary-based company’s rival, Canadian government-owned Trans Mountain, expects to complete expansion of its pipeline late this year and has sold 80% of that space under contract, giving it security during periods of spare capacity.

As a result, the Mainline’s utilization rate may drop to 95% from full, but expanding oil production and the Mainline’s lower toll compared to Trans Mountain’s will soon refill it, Gruending said.

Enbridge expects to apply for approval to the CER in early fall, with the expectation that the settlement could be approved and implemented this year. The agreement covers 70% of Mainline deliveries, with the remaining 30% covered by a pre-existing agreement.

Read the full article here

News Room May 5, 2023 May 5, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Bank of America boosted by bigger loan book and robust trading

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Diageo to replace chief executive Debra Crew after share price slump

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Nvidia chief vows to ‘accelerate recovery’ of China sales as H20 chip ban lifted

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

How a decade-old Italian scandal landed at door of Deutsche Bank’s CEO

Deutsche Bank chief executive Christian Sewing has become embroiled in a €152mn…

‘Fire’ is now the greater threat to investors than ‘ice’

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

Playa Hotels & Resorts (NASDAQ:PLYA) Delivers Strong Q4 Numbers By Stock Story

By News Room
Stocks

ON24 (NYSE:ONTF) Posts Better-Than-Expected Sales In Q4 By Stock Story

By News Room
Stocks

Evolent Health shares leap on Q4 earnings beat and upbeat guidance By Investing.com

By News Room
Stocks

Chuy’s (NASDAQ:CHUY) Reports Q4 In Line With Expectations But Stock Drops

By News Room
Stocks

Red River Bancshares raises dividend to $0.09 per share

By News Room
Stocks

Ecolab appoints Microsoft executive to board

By News Room
Stocks

Semilux secures $50 million equity deal with White Lion Capital

By News Room
Stocks

US government debt trajectory to push long-term yields higher, says PIMCO

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?