Pipeline Expansions? Say What? Enbridge Pipeline 3 Is Long Pole In The Tent -- May 24, 2021

 I thought pipelines were being shut down. Then this from ArgusMedia today: 

Heavy Canadian crude shipments to the US are set to rise as more pipeline expansions come on stream and oil sands output climbs above pre-Covid levels.

Pipeline capacity to ship heavy crude from Canada to the US is scheduled to rise by at least 420,000 b/d this year. The expansions are expected to increase Canadian heavy crude's market share in the US Gulf coast refining hub and could lead to higher heavy sour crude exports.

Canadian crude accounted for close to 56pc of all US imports in March.

Line 3:

The largest boost to export capacity will come from Enbridge's Line 3 replacement project, which will increase capacity from western Canada to the US midcontinent by 370,000 b/d. 

Enbridge has completed about 60pc of the work in Minnesota and the line is on track to start up in the fourth quarter. 

The project will expand Line 3 capacity from Alberta to Wisconsin to 760,000 b/d from 390,000 b/d and will enable Enbridge to capitalise on growing heavy crude demand amid a declining global heavy supply outlook. 

The nearly 700km Minnesota segment is the last section needed to complete the project, but regulatory and legal issues have delayed progress. Opponents are suing to stop the expansion and the Minnesota Court of Appeals heard arguments in March on a challenge to the state's approval. 

Producers expect the expansion to provide substantial relief to pipeline congestion. 

Enbridge needed to reject 52pc of requests for space on its two largest heavy crude lines for June, representing just over half of its near 3mn b/d Mainline system. 

Enbridge has had to reject on average 47pc of all nominations for capacity on the lines in the first six months of this year. The rejections should drop to 10pc once Line 3 comes into service.

Enbridge Express, Hardisty, Alberta, to Casper, WY:

• boosting capacity on its 280,000 b/d
• plans to complete the second phase of the 50,000 b/d expansion in the second quarter.
• the line connects to the Platte system, which moves crude from Casper to Wood River, Illinois.
  

Enbridge's Mainline system:

• increased by 100,000 b/d in 2019 and may see further increases;
• option to increase Mainline capacity by another 200,000 b/d
  

Enbridge's Southern Lights:

• Enbridge weighing a plan to reverse its 180,000 b/d Southern Lights pipeline from Illinois to Alberta to add more southbound capacity. 

Keystone:

• TC Energy was planning a 50,000 b/d expansion of its Keystone pipeline system from Hardisty to Patoka, but says it does "not have a timeline to share" on any increase in capacity. 

Much more at the link.