The Globe and Mail reports in its Saturday edition that Enbridge head Al Monaco says Canadian oil producers will likely
need only two major pipeline
projects to go ahead to have enough
capacity for expanding volumes
over a decade or more. The Globe's Jacqueline Nelson writes that Mr. Monaco says in the
next couple of years, pipeline capacity
will be tight as production
from Alberta's oil sands
increase, adding to the volumes
vying for space on already
full pipelines to key U.S. markets.
He says, however, that not every
proposed oil-pipeline project
will be needed into the
2020s. He says Enbridge's $7.5-billion Line 3 replacement project,
other incremental capacity
his company will be able to add
on its Mainline system, plus one
other major oil pipeline project
by a competitor, will likely be
enough.
Mr. Monaco says: "We believe our post-Line 3 capacity,
along with future expandability,
and one of the other
pipelines being proposed, provides
enough capacity well into
the latter half of the next decade. That should suffice based on
the current supply outlook."
Mr. Monaco cautions the
building of pipelines is not his
call -- that it is based on market
demand by producers and refiners.
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