The Sky is not FallingFurther to Marners excellent summary, consider that ENBs assets are irreplaceable. Take Texas Eastern pipeline which ships gas from the gulf coast to NYC and the eastern seaboard. My recollection is that there hasn't been a new pipe into this region in thirty years. Same for the west coast pipeline in bc. This 2 bcf pipe serves the lower mainland and the pacifac northwest. I wont repeat Marners excellent contractual summary. But you also need to know what drives this business. Firstly producers have to deliver to a pipeline which is connected to a market. So in order to get paid they have to get connected or they dont get paid. Similarly the market demands product. Secondly part of the contracts producers or markets sign contain rigorous credit covenants. Typically it's an irrevocable letter of credit equal to 6 to 12 months of demand charges. In the case of weak credit parties, they are required to prepay a month of demand charges. In extreme case the pipeline has the right to seize the oil in the pipe owned by the shipper. And finally, all of ENBs pipes are regulated meaning they are entitled to a rate of return so losses are made up in future. As we have seen volumes can be lower in exceptional events. But in the long run ENB is pretty much bulletproof. My experience in pipelines was as mgr of tptn at a large cdn company involved in the TCPL, Northern Border and PGT pipeline expansions in the 1990s and the execution of a very large ten year contract on the Alliance pipeline six years ago. In each case most of the negotiations involved credit. The pipes wanting the moon. Us wanting the minimum obligation.