CALGARY, Alberta - Two major oil companies have asked Canada’s energy regulator to urgently review Enbridge Inc’s proposal to switch to fixed contracts on its Mainline pipeline system, arguing the changes would be an abuse of Enbridge’s market power.
They join MEG Energy Corp and the Explorers and Producers Association of Canada in growing dissent against Enbridge’s proposal to introduce long-term fixed-volume contracts on North America’s largest pipeline system. “It seems it is getting the cart before the horse because the results of the open season will inform our application,” Jarvis told Reuters.
Shell said congestion on Canadian export pipelines meant Enbridge was effectively forcing shippers to sign up for unfair tolls on long-term committed capacity or risk being left without market access.
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