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Enbridge signs tolling deal with shippers for Mainline pipeline system

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Enbridge Inc. says it has reached a deal with shippers for tolling on its Mainline pipeline system, which moves over three million barrels a day of crude oil and liquids from Western Canada. This photo taken in October 2016 shows an aboveground section of Enbridge’s Line 5 at the Mackinaw City, Mich., pump station. THE CANADIAN PRESS/AP-John Flesher

Calgary

Enbridge Inc. says it has reached a deal with shippers for tolling on its Mainline pipeline system, which moves over three million barrels a day of crude oil and liquids from Western Canada.

The announcement Thursday is a major milestone for the Calgary-based pipeline company, which has been negotiating with oil shippers on a new tolling agreement ever since its proposal to fill Canada’s largest oil pipeline network through long-term contracts was rejected by the Canada Energy Regulator in November 2021.

Enbridge CEO Greg Ebel said the settlement has been approved by the company’s board of directors and received “overwhelming support” from a 37-member industry stakeholder group that included producers, refiners, integrated companies, industry agencies, and governments.

“This settlement is a win-win-win – customers will continue to receive competitive and responsive service; Enbridge will earn attractive risk-adjusted returns; and the Mainline will continue to feed North America and global markets with a long-term source of safe, secure, and affordable energy,” Ebel said in a release.

Enbridge’s Mainline is Canada’s largest oil pipeline system, providing about 70 per cent of the total oil pipeline transportation capacity out of Western Canada.

The pipeline’s demand has exceeded capacity over the past few years, so Enbridge had applied to enter into long-term contracts for 90 per cent of the Mainline system’s capacity.

Enbridge had argued firm contracts would give customers more predictable access to the pipeline, but some Canadian oil producers argued the proposed change would worsen the existing capacity constraints and could lead to lower oil prices.

In rejecting the proposal in 2021, the Canada Energy Regulator concluded Enbridge’s proposal would dramatically change access to the pipeline. It said certain companies would benefit from long-term stability, but others would lose access to the pipeline.

Enbridge said Thursday the new settlement covers both the Canadian and U.S. portions of the Mainline system and will provide customers with a stable, competitive toll relative to competing alternatives.

The agreement also includes a financial performance collar providing incentives for Enbridge to optimize throughput and cost, but also providing downside protection in the event of extreme supply or demand disruptions.

Enbridge said it expects to jointly finalize the settlement with industry and submit an application for approval to the Canada Energy Regulator in the third quarter.

It expects the new tolling settlement could be approved and implemented later this year. The settlement term is seven-and-a-half years, lasting through 2028.

This report by The Canadian Press was first published May 4, 2023.

Companies in this story: (TSX:ENB)

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2025 Federal Election

Canada Continues to Miss LNG Opportunities: Why the World Needs Our LNG – and We’re Not Ready

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From EnergyNow.Ca

By Katarzyna (Kasha) Piquette, Founder and CEO, Canadian Energy Ventures

When Russia invaded Ukraine in 2022, Europe’s energy system was thrown into chaos. Much of the 150 billion cubic meters of Russian gas that once flowed through pipelines had to be replaced—fast. Europe turned to every alternative it could find: restarting coal and nuclear plants, accelerating wind and solar approvals, and most notably, launching a historic buildout of LNG import capacity.

Today, LNG terminals are built around the world. The ‘business case’ is solid. The ships are sailing. The demand is real. But where is Canada?

As of March 28, 2025, natural gas prices tell a story of extreme imbalance. While Europe and Asia are paying around $13 per million BTU, prices at Alberta’s AECO hub remain below $2.20 CAD per gigajoule—a fraction of global market levels. This is more than a pricing mismatch. It’s a signal that Canada, a country rich in natural gas and global goodwill, is failing to connect the dots between energy security abroad and economic opportunity at home.

Since 2022, Europe has added over 80 billion cubic meters of LNG import capacity, with another 80 billion planned by 2030. This infrastructure didn’t appear overnight. It came from urgency, unity, and massive investment. And while Europe was preparing to receive, Canada has yet to build at scale to supply.

We have the resource. We have the relationships. What we lack is the infrastructure.

Estimates suggest that $55 to $75 billion in investment is needed to scale Canadian LNG capacity to match our potential as a global supplier. That includes pipelines, liquefaction terminals, and export facilities on both coasts. These aren’t just economic assets—they’re tools of diplomacy, climate alignment, and Indigenous partnership. A portion of this investment can and should be met through public-private partnerships, leveraging government policy and capital alongside private sector innovation and capacity.

Meanwhile, Germany continues to grapple with the complexities of energy dependence. In January 2025, German authorities seized the Panama-flagged tanker Eventin, suspected of being part of Russia’s “shadow fleet” used to circumvent oil sanctions. The vessel, carrying approximately 100,000 tons of Russian crude oil valued at €40 million, was found adrift off the Baltic Sea island of Rügen and subsequently detained. This incident underscores the ongoing challenges Europe faces in enforcing energy sanctions and highlights the pressing need for reliable, alternative energy sources like Canadian LNG.

What is often left out of the broader energy conversation is the staggering environmental cost of the war itself. According to the Initiative on GHG Accounting of War, the war in Ukraine has produced over 230 million tonnes of CO₂ equivalent (MtCO₂e) since 2022—a volume comparable to the combined annual emissions of Austria, Hungary, the Czech Republic, and Slovakia. These emissions come from military operations, destruction of infrastructure, fires, and the energy used to rebuild and support displaced populations. Yet these emissions are largely absent from official climate accounting, exposing a major blind spot in how we track and mitigate global emissions.

This is not just about dollars and molecules. This is about vision. Canada has an opportunity to offer democratic, transparent, and lower-emission energy to a world in flux. Canadian LNG can displace coal in Asia, reduce reliance on authoritarian suppliers in Europe, and provide real returns to our provinces and Indigenous communities. There is also growing potential for strategic energy cooperation between Canada, Poland, and Ukraine—linking Canadian LNG supply with European infrastructure and Ukrainian resilience, creating a transatlantic corridor for secure and democratic energy flows.

Moreover, LNG presents Canada with a concrete path to diversify its trade relationships, reducing overdependence on the U.S. market by opening new, high-value markets in Europe and Asia. This kind of energy diplomacy would not only strengthen Canada’s strategic position globally but also generate fiscal capacity to invest in national priorities—including increased defense spending to meet our NATO commitments.

Let’s be clear: LNG is not the endgame. Significant resources are being dedicated to building out nuclear capacity—particularly through Small Modular Reactors (SMRs)—alongside the rapid expansion of renewables and energy storage. But in the near term, LNG remains a vital bridge, especially when it’s sourced from a country committed to environmental responsibility, human rights, and the rule of law.

We are standing at the edge of a global shift. If we don’t step up, others will step in. The infrastructure gap is closing—but not in our favor.

Canada holds the key. The world is knocking. It’s time we opened the door.


Sources:

  • Natural Gas Prices by Region (March 28, 2025): Reuters
  • European LNG Import Capacity Additions: European Commission
  • German Seizure of Russian Shadow Fleet Tanker: Reuters
  • War Emissions Estimate (230 MtCO₂e): Planetary Security Initiative
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Energy

Trump Takes More Action To Get Government Out Of LNG’s Way

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From the Daily Caller News Foundation

By David Blackmon

The Trump administration moved this week to eliminate another Biden-era artificial roadblock to energy infrastructure development which is both unneeded and counterproductive to U.S. energy security.

In April 2023, Biden’s Department of Energy, under the hyper-politicized leadership of Secretary Jennifer Granholm, implemented a new policy requiring LNG projects to begin exports within seven years of receiving federal approval. Granholm somewhat hilariously claimed the policy was aimed at ensuring timely development and aligning with climate goals by preventing indefinite delays in energy projects that could impact emissions targets.

This claim was rendered incredibly specious just 8 months later, when Granholm aligned with then-President Joe Biden’s “pause” in permitting for new LNG projects due to absurd fears such exports might actually create higher emissions than coal-fired power plants. The draft study that served as the basis for the pause was thoroughly debunked within a few months, yet Granholm and the White House steadfastly maintained their ruse for a full year until Donald Trump took office on Jan. 20 and reversed Biden’s order.

Certainly, any company involved in the development of a major LNG export project wants to proceed to first cargoes as expeditiously as possible. After all, the sooner a project starts generating revenues, the more rapid the payout becomes, and the higher the returns on investments. That’s the whole goal of entering this high-growth industry. Just as obviously, unforeseen delays in the development process can lead to big cost overruns that are the bane of any major infrastructure project.

On the other hand, these are highly complex, capital-intensive projects that are subject to all sorts of delay factors. As developers experienced in recent years, disruptions in supply chains caused by factors related to the COVID-19 pandemic resulted in major delays and cost overruns in projects in every facet of the economy.

Developers in the LNG industry have argued that this arbitrary timeline was too restrictive, citing these and other factors that can extend beyond seven years. Trump, responding to these concerns and his campaign promises to bolster American energy dominance, moved swiftly to eliminate this requirement. On Tuesday, Reuters reported that the U.S. was set to rescind this policy, freeing LNG projects from the rigid timeline and potentially accelerating their completion.

This policy reversal could signal a broader approach to infrastructure under Trump. The Infrastructure Investment and Jobs Act, enacted in 2021, allocated $1.2 trillion to rebuild roads, bridges, broadband and other critical systems, with funds intended to be awarded over five years, though some projects naturally extend beyond that due to construction timelines. The seven-year LNG deadline was a specific energy-related constraint, but Trump’s administration has shown a willingness to pause or redirect Biden-era infrastructure funding more generally. For instance, Trump’s Jan.20 executive order, “Unleashing American Energy,” directed agencies to halt disbursements under the IIJA and IRA pending a 90-day review, raising questions about whether similar time-bound restrictions across infrastructure sectors might also be loosened or eliminated.

Critics argue that scrapping deadlines risks stalling projects indefinitely, undermining the urgency Biden sought to instill in modernizing U.S. infrastructure. Supporters argue that developers already have every profit-motivated incentive to proceed as rapidly as possible and see the elimination of this restriction as a pragmatic adjustment, allowing flexibility for states and private entities to navigate permitting, labor shortages and supply chain issues—challenges that have persisted into 2025.

For example, the $294 billion in unawarded IIJA funds, including $87.2 billion in competitive grants, now fall under Trump’s purview, and his more energy-focused administration could prioritize projects aligned with his energy and economic goals over Biden’s climate and DEI-focused initiatives.

Ultimately, Trump’s decision to end the seven-year LNG deadline exemplifies his intent to reshape infrastructure policy by prioritizing speed, flexibility and industry needs. Whether this extends formally to all U.S. infrastructure projects remains unclear, but seems likely given the Trump White House’s stated objectives and priorities.

This move also clearly aligns with the overall Trump philosophy of getting the government out of the way, allowing the markets to work and freeing the business community to restore American Energy Dominance in the most expeditious way possible.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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