Canada’s pipelines are at capacity: Enbridge
CALGARY — With a glut of Canadian crude being produced, the nation's network of pipelines have reached their capacity, says a spokesman for Canada's top oil mover.
While analysts had expected to squeeze a few more years out of existing pipeline infrastructure, Enbridge spokesman Todd Nogier said those lines are now full, prompting the need to build more.
"I think it really underlines the importance of building pipeline infrastructure," Nogier said. "The supply is rising exponentially, not just in the oilsands, but in the U.S. as well."
The revelation comes while two significant projects — Enbridge's Northern Gateway pipeline and TransCanada's Keystone XL pipeline — are mired by regulatory hurdles and protests.
"I would say it's more challenging because there are more pockets of opposition," he said. "I think there is greater attention on pipelines ... than in the past and the industry is adjusting to that."
Enbridge currently has $13 billion invested in at least nine secured pipeline projects throughout Canada and the U.S., focusing on boosting access to eastern Canadian refineries, Canada's West Coast and refineries on the U.S. Gulf Coast.
Nogier said one of the energy giant's main goals is moving more Alberta crude to refining centres in Montreal, which currently pay a premium to import oil from the U.S. or overseas producers.
Sending western Canadian oil to U.S. refineries as well as foreign markets via western ports also tops the company's agenda.
"There's a glut of oil and it's really reducing the price for Canadian oil," Nogier said.
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