Line 9 Reversal

Enbridge is investing close to $9 billion between 2013 and 2016 in its Eastern and Light Oil Market Access initiatives. A major goal is to improve access for Enbridge shippers – particularly shippers of light shale crude from North Dakota, to refineries in the Midwest and eastern Canada. And by the end of 2014 refineries in Illinois, Michigan and Ohio as well as in Ontario will have better access to Enbridge crude. But even when the reversal of Line 9 in Ontario is completed and Enbridge crude can flow as far as Montreal, only about 300 Mb/d will be available for Quebec refineries to process. Today we continue our review of Enbridge eastern expansion plans.

The Energy East pipeline project proposes to convert part of the TransCanada Mainline natural gas system and add new pipeline in eastern Canada to connect oil receipts in Alberta with refineries in Ontario, Quebec and on the Atlantic seaboard. The proposal competes with existing plans by Enbridge to feed eastern Canadian refineries with light crude but does offer the prospect of supplying heavy crude for export from Canada’s East Coast. Today in Part 2 of a series on the project we review destination markets.