Canada needs just 2 crude export lines: Monaco

Two new crude oil pipelines will provide enough capacity to ship Canadian production to market for export until at least the mid 2020s, Enbridge CEO Al Monaco said Friday – emphasizing his company's Line 3 should be one of them.

Monaco's comments come amid growing concern Canada faces pipeline overbuild after years of limited market access. The Canadian government approved Enbridge's Line 3 replacement project and Kinder Morgan's Trans Mountain expansion last November, while TransCanada has reapplied to continue construction on the highly controversial Keystone XL Pipeline. TransCanada is also awaiting permits for its proposed Energy East project.

If all four pipelines are built, the 2.1 billion barrels per day (BBPD) leap in capacity would overwhelm industry forecasts of Canadian crude production growth of 850,000 BPD by 2021, Kallanish Energy learns.

"If you look at the supply profile and you look at our expansion replacement capacity for Line 3 and one other pipeline, that should suffice, based on the current supply outlook, out to at least mid-next decade," Monaco said during Enbridge’s fourth-quarter earnings call. 

Wood Mackenzie analyst Mark Oberstoetter told Reuters his firm agreed with Monaco's assessment on the need for new pipelines.

"We definitely need two of these pipelines by around 2025 and, after that, it depends on the supply outlook," Oberstoetter said. "There's not an evident need to get three or four pipelines built."

1 Comment on Canada needs just 2 crude export lines: Monaco

  1. Leaders…LISTEN UP !
    Two pipelines are enough says Enbridge CEO Al Monaco !
    Enbridge’ Line 3 (already under re-construction) is one ..Which ONE of the ‘other three ’ pipelines will it be ???…Keystone XL, Energy East , or Kinder Morgan, Trans Mountain Expansion pipeline(TMEP)………
    President Trump wants a ‘chunk’ of the Keystone profits”…how big a chunk?

    As for Energy East… this old natural gas pipeline raises many questions as to its location and suitability…but after rigorous public and technical review this would seem a logical choice…

    Recall that the P.M. told us he would use science to help decide…we’ve seen no independent science that suggests a 700% increase in dlibit tanker traffic in BC and Washington State waters will ever win public approval…! First Nations and Climate Change groups have yet to see how the public and courts will decide…
    A NEW pipeline to the BC coast likely is much desired by BC and Alberta public …What’s needed is a dilbit tanker shipping route that minimizes the probability of a dilbit spill in our busy BC waters…
    For now, build ONE pipeline from Alberta to an OPEN port location on the BC coast now…say near Port Simpson….and forget the other wannabe pipeline schemes until the market demand arrives !
    C. Shalansky,P Eng retired
    604 986 4657
    North Vancouver

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