The Financial Post reports in its Friday edition that chief executive officer Al Monaco says Enbridge is making plans to move Canadian crude oil to the eastern Gulf Coast region of Louisiana and Mississippi. A Reuters dispatch to the Post reports that
Enbridge has been a main player in adding pipeline capacity to the western Gulf Coast, most recently with the expansion of the Seaway pipeline between the hub at Cushing, Okla., and the Houston area.
That project has begun shrinking a glut of oil supplies in the middle of the continent, where prices have been under pressure compared with international crudes. With increasingly tight capacity to move oil out of Alberta, Canadian crude has been doubly discounted.
As more supplies of Canadian oil and North Dakota's Bakken crude are shipped to Texas, refineries to the east represent the next major potential market, says Mr. Monaco. He is mum on the details, but says,
"I think it's very clear, though, from the pricing disparities that we saw that we need to get to those markets, particularly the eastern Gulf." He notes the Gulf Coast region has about eight million barrels a day of refining capacity and that about half of that capacity is on the eastern side.
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