Line 3 bids for October out - good news for SU ENB is offering 620,000 barrels a day of capacity in its Line 3 oil pipeline in October, according to a notice it sent to shippers. The Line 3 project will replace and older Line 3 that can ship about 390,000 barrels a day. The project is scheduled to go into operation in the fourth quarter, according to an email from Enbridge.
The start of Line 3 is expected to bring relief to Canada’s oil-sands producers, who have struggled for years with a shortage of export pipelines as projects face increasing scrutiny from courts and regulators.
Western Canadian Select crude’s discount to the West Texas Intermediate benchmark for Oct. narrowed 40 cents to US$12.05 a barrel at 10:23 a.m. Calgary time and, for September, narrowed 35 cents to US$13.40/bbl, according to NE2 Group data.
Enbridge will offer 350,000 barrels a day of light oil capacity and 270,000 barrels a day of heavy oil capacity in October, according to a copy of the shipper notice seen by Bloomberg.