First new oil sands pipeline in years could start next month

Alberta

A KEY pipeline linking Canada's oil sands to US markets could start shipping crude as early as next month.

Enbridge Inc's Line 3 oil pipeline from Alberta to Wisconsin could start operating as soon as Sept 15, bringing relief to Canadian oil sands producers who have had limited access to export pipelines. The new 760,0000 barrel-a-day conduit that replaces an older one with less capacity is as little as 30 to 60 days from completion, according to a notice sent to shippers.

Canada's oil sands producers have struggled for years with a shortage of export pipelines as projects to build new ones face increasing scrutiny from courts and regulators. US President Joe Biden, on his first day in office, rescinded a permit for TC Energy Corp's Keystone XL project that would have helped increase shipments of Canadian crude to the US Gulf Coast.

"Enbridge has filed for toll surcharges on the Line 3 replacement with the Canada Energy Regulator and Federal Energy Regulatory Commission, which could be effective as early as Sept 15," a spokesperson said in an e-mailed statement. "There will be a further filing to specify the specific in-service date shortly before the line goes into service once all necessary construction and commissioning activities are complete."

The pipeline would be the first new cross-border export project built between Canada and the US in years. The line is scheduled to enter service with oil sands production exceeding the capacity of existing lines out of Western Canada, forcing some companies to ship crude by rail.

The Trans Mountain expansion, another export pipeline under construction is British Columbia, is scheduled to enter service as early as 2022. BLOOMBERG