Light Oil Market Access

Delays to the Enbridge Sandpiper project bringing greater volumes of Bakken crude onto the Enbridge Mainline system at Superior, WS threaten to limit the supply of crude to feed refineries in Quebec when Enbridge’s Line 9B reversal project comes online in November 2015. The market impact could push crude prices higher in North Dakota. Today we discuss the crude supply picture and possible impact when Line 9B opens up.

After a year’s delay due to permit issues, Enbridge now expects the expanded and reversed 300 Mb/d Line 9B pipeline to Montreal will come online next month (November 2015). The pipeline is an important cog in Enbridge’s Eastern Access and Light Oil Market Access expansion projects and will supply mostly light crude to two refineries in Quebec. As we explain today, the payload will travel a winding route to get to Montreal.

Enbridge own and operate the longest liquids pipeline system in North America extending from Fort McMurray in Alberta to Montreal in Eastern Canada and south through the US Midwest to Freeport on the Texas Gulf Coast. Although the major purpose of the pipeline is to deliver heavy western Canadian crude, it also carries light crude to eastern Canada and the US Midwest. Projects underway that are expected to be completed at the end of 2014 will expand flows of light crude to the east by 400 Mb/d. Today we continue our series reviewing the Enbridge initiatives with the Light Oil Market Access (LOMA) projects.

Eastern Canadian refineries are importing record volumes of light US crude - 263 Mb/d in May 2014 according to the Energy Information Administration (EIA). By the end of 2014, pipeline reversals and expansions to the Enbridge network will increase the flow of light crude to eastern refineries from Western Canada and North Dakota. The result could be even more imports from the US. Today we continue our series reviewing the extent and impact of Enbridge projects to move crude east.