The Globe and Mail reports in its Wednesday edition that Enbridge's
two new pipelines will significantly boost exports of Alberta
oil to Quebec and give the energy
industry its first major access to
United States Gulf Coast refineries.
The Globe's Jeff Lewis writes that Enbridge commences pumping crude
through its Line 9
conduit on Nov. 1 and its much
larger Flanagan South line by early
December.
Line 9 would send as much as
300,000 barrels of mainly light
crude a day to refineries in Montreal
and Quebec City, while Flanagan
South is designed to shuttle
600,000 barrels of primarily
heavy crude a day to the key storage
hub of Cushing, Okla. The oil
would move on other pipelines
from there to refineries on the
U.S. Gulf Coast.
The new pipeline connections
will help reduce volatility for Canadian
oil prices by giving Calgary-based producers -- long
beholden to a single market in
the American Midwest -- more
places to sell crude. ARC Financial vice-president Jackie
Forrest says,
"But
they don't solve the problem in
terms of we still have a limited
amount of export capacity on
pipe leaving Western Canada."
Enbridge says it plans to spend
$44-billion on projects
through 2018.
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