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Enbridge (NYSE:ENB) received approval from the Canada Energy Regulator for the Mainline toll settlement. This landmark development establishes the methodology for determining tolls for shippers on the route through the end of 2028.
The toll agreement, painstakingly negotiated with stakeholders including producers, refiners, integrated shippers, governmental bodies, and industry associations, lays out the tariffs for transporting crude oil liquids originating in western Canada and reaching destinations across Canada and North America.
Effective from July 1 on an interim basis, the comprehensive agreement is retroactively applied from July 1, 2021, as confirmed by the company.
Despite recent capacity constraints due to burgeoning demand on the Mainline, a reprieve is anticipated once the Trans Mountain expansion project is operational. Progress on the expansion, slated for a Q2 commencement, is proceeding as planned.
Enbridge’s Mainline network, managed by ENB, stands as the predominant oil pipeline infrastructure in Canada. It commands approximately 70% of the aggregate oil pipeline capacity for transporting resources out of Western Canada.
