Energy
Enbridge signs tolling deal with shippers for Mainline pipeline system
Enbridge Inc. says it has reached a deal with shippers for tolling on its Mainline pipeline system, which moves over three million barrels a day of crude oil and liquids from Western Canada. This photo taken in October 2016 shows an aboveground section of Enbridge’s Line 5 at the Mackinaw City, Mich., pump station. THE CANADIAN PRESS/AP-John Flesher
Calgary
Enbridge Inc. says it has reached a deal with shippers for tolling on its Mainline pipeline system, which moves over three million barrels a day of crude oil and liquids from Western Canada.
The announcement Thursday is a major milestone for the Calgary-based pipeline company, which has been negotiating with oil shippers on a new tolling agreement ever since its proposal to fill Canada’s largest oil pipeline network through long-term contracts was rejected by the Canada Energy Regulator in November 2021.
Enbridge CEO Greg Ebel said the settlement has been approved by the company’s board of directors and received “overwhelming support” from a 37-member industry stakeholder group that included producers, refiners, integrated companies, industry agencies, and governments.
“This settlement is a win-win-win – customers will continue to receive competitive and responsive service; Enbridge will earn attractive risk-adjusted returns; and the Mainline will continue to feed North America and global markets with a long-term source of safe, secure, and affordable energy,” Ebel said in a release.
Enbridge’s Mainline is Canada’s largest oil pipeline system, providing about 70 per cent of the total oil pipeline transportation capacity out of Western Canada.
The pipeline’s demand has exceeded capacity over the past few years, so Enbridge had applied to enter into long-term contracts for 90 per cent of the Mainline system’s capacity.
Enbridge had argued firm contracts would give customers more predictable access to the pipeline, but some Canadian oil producers argued the proposed change would worsen the existing capacity constraints and could lead to lower oil prices.
In rejecting the proposal in 2021, the Canada Energy Regulator concluded Enbridge’s proposal would dramatically change access to the pipeline. It said certain companies would benefit from long-term stability, but others would lose access to the pipeline.
Enbridge said Thursday the new settlement covers both the Canadian and U.S. portions of the Mainline system and will provide customers with a stable, competitive toll relative to competing alternatives.
The agreement also includes a financial performance collar providing incentives for Enbridge to optimize throughput and cost, but also providing downside protection in the event of extreme supply or demand disruptions.
Enbridge said it expects to jointly finalize the settlement with industry and submit an application for approval to the Canada Energy Regulator in the third quarter.
It expects the new tolling settlement could be approved and implemented later this year. The settlement term is seven-and-a-half years, lasting through 2028.
This report by The Canadian Press was first published May 4, 2023.
Companies in this story: (TSX:ENB)
“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
Oh, Canada
We find it endlessly fascinating that most Canadians believe they live in a representative democracy, where aspiring candidates engage in authentic politicking to earn their place in office. So accustomed are Canada’s power brokers to getting their way, they rarely bother to cover their tracks. A careful reading of the notoriously pliant Canadian press makes anticipating future events in the country surprisingly straightforward.
Back in December, when Pierre Poilievre was given better than 90% odds of replacing Prime Minister Justin Trudeau—and Mark Carney was still just an uncharismatic banker few had heard of—we engaged in some not-so-speculative dot-connecting and correctly predicted Carney’s rise to the top spot. Our interest was driven by the notoriously rocky relationship between Ottawa and the Province of Alberta, home to one of the world’s largest hydrocarbon reserves, and how Carney’s rise might be a catalyst for resetting Canada’s energy trajectory. In a follow-up article titled “The Fix Is In,” we laid out a few more predictions:
“Here’s how the play is likely to unfold in the weeks and months ahead: Carney will be elected Prime Minister on April 28 by a comfortable margin; [Alberta Premier Danielle] Smith will trigger a constitutional crisis, providing cover for Carney to strike a grand bargain that finally resolves longstanding tensions between the provinces and Ottawa; and large infrastructure permitting reform will fall into place. Protests against these developments will be surprisingly muted, and those who do take to the streets will be largely ignored by the media. The entire effort will be wrapped in a thicket of patriotism, with Trump portrayed as a threat even greater than climate change itself. References to carbon emissions will slowly fade…
In parallel, we expect Trump and Carney to swiftly strike a favorable deal on tariffs, padding the latter’s bona fides just as his political capital will be most needed.”
The votes have barely been counted, yet the next moves are already unfolding…
“Alberta Premier Danielle Smith says she’ll make it easier for citizens to initiate a referendum on the province’s future in Canada, after warning that a Liberal win in Monday’s election could spur a groundswell of support for Alberta separatism. Smith said on Tuesday that a newly tabled elections bill will give everyday Albertans a bigger say in the province’s affairs.
‘(We’re giving) Albertans more ways to be directly involved in democracy, and to have their say on issues that matter to them,’ Smith told reporters in Edmonton.
If passed, the new law would dramatically lower the number of signatures needed to put a citizen-proposed constitutional referendum question on the ballot, setting a new threshold of 10 per cent of general election turnout — or just over 175,000, based on Alberta’s last provincial election in 2023.”
“US President Donald Trump said on Wednesday that Canadian Prime Minister Mark Carney is looking to make a trade deal and will visit the White House within the next week. Trump said he congratulated Carney on his election victory when the Canadian leader called on Tuesday.
‘He called me up yesterday – he said let’s make a deal,’ Trump told reporters at the White House after a televised Cabinet meeting.”
Remember where you read it first.
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