Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced it will be holding an open season for transportation services on the Canadian Mainline pipeline system.
The Canadian Mainline is a common carrier pipeline system with 100% of its transportation capacity currently available to shippers on a spot, or uncommitted, basis. The Competitive Tolling Settlement (CTS) that governs transportation tolls on the Mainline will expire on June 30, 2021. In advance of CTS expiration, Enbridge has spent considerable time negotiating with its shippers and is holding an open season in order to provide shippers with the opportunity to enter into long-term contracts for priority transportation service on the Canadian Mainline, with at least 10% of capacity reserved for uncommitted volumes at all times.
Highlights of the open season offering include:
- Priority access in Canada for contracted volume;
- Contract term up to 20 years;
- Toll discounts for longer terms and higher volumes.
Following completion of the Line 3 Replacement project, Mainline capacity will be 3.225 million bpd, of which up to 2.9 million bpd will be contracted with the remaining 325 kbpd remaining in spot service.
The open season will begin at 8:00 a.m. MDT August 2, 2019 and end at 12:00 p.m. MDT on October 2, 2019.
Bona fide potential shippers that desire to receive copies of the open season documents, including open season procedures and transportation service agreements, are required to execute a confidentiality agreement (CA).