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Enbridge makes application for contracting Canadian crude oil pipeline system

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North American energy infrastructure company Enbridge has submitted an application to the Canada Energy Regulator (CER) to implement contracting on the company’s Mainline pipeline system.

The application, which is for contracted and uncommitted service, includes the associated terms, conditions and tolls of each service that would be offered in an open season, following approval by the CER.

The tolls and services are expected to replace the current tolling settlement, which is in place until 30 June 2021.

"We are moving to a contracted Mainline system in response to what our customers have been asking us for and for the benefit of the entire industry," explained Guy Jarvis, Enbridge executive vice-president for liquids pipelines. "Today's application is based on significant input and advice from every corner of our industry and almost two years of extensive negotiation with shippers to recognise the needs of various customers in a balanced way."

Jarvis added: "Shippers representing approximately 70% of the Mainline's current throughput support our approach, as evidenced by the letters included within our application. The most important part of this offering will be to secure long-term demand for Canadian crude oil while ensuring that all interested shippers can participate in a fair and transparent open season process."

Enbridge operates the largest crude oil pipeline system in the world, with the Mainline representing an integral part of the system. It includes five pipelines that begin in Edmonton, Alberta and cross the Canada-US border near Gretna, Manitoba, where it operates in the us as the Lakehead system.

The current cross-border capacity of the Mainline, according to Enbridge, is around 2.9 million barrels of crude oil per day.