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Several suggested experiencesConnecting to the country's major pipelines could markedly increase the volume of oil that can be exported from Western Canada. In total they are equivalent to creating large bran.g new pipeline.
Enbridge is proposing four different expansions of its pipeline system, which is the largest in the country.
Calgary company announced A final investment decision will be made on Friday to move forward with the first phase, which will cost US$1.4 billion to add 150,000 barrels per day of capacity in its trunk system and an additional 100,000 barrels per day in the Flanagan South pipeline. The project is due to be completed in 2027.
“We are seeing a gradual arrival of supplies.“Personally, it's growing,” and these pipeline expansions fill that need, said Colin Grueding, Enbridge's president of liquids pipelines.he spoke to reporters Friday.
The proposals come as Alberta pursues its own pipeline project and renewed discussions about reviving the failed Keystone XL pipeline.
There are also concerns about pipelines filling up in the next few years as oil production continues to rise to new record levels. Once export pipelines reach capacity, there could be a backlog in oil production, causing Canadian oil prices to fall and lower royalties for governments.
“This should work”
Meanwhile, Trans Mountainopposing two different improvements to its pipeline from Edmonton to a port in the Vancouver area. The physical size of the pipeline will not change, but The Royal Corporation is investigating the use of drag reducers to increase the amount of oil that can be transported. The second project will focus on building more powerful pumping stations to pump more oil through the pipeline.
Overall, there shouldn't be any concerns about export restrictions, Gruding said, even as oil companies continue to pump more oil into Alberta.
“The way we see the base case unfolding is a combination of the Enbridge optimizations and the Trans Mountain optimizations. We'll take care of that,” he said. “We think it should work. And it's perfectly fine to have a little more output than supply.”
More improvements are always possible in the future, he said.
“We have further optimizations to take care of this, as we have for 75 years. I think we've expanded the system hundreds of times.”
Free space
The country's export pipelines are currently filling up according to a recent report from TD Cowen. However, improving existing pipelines could create spare export capacity for several more countries. years.
“Accelerated pipeline expansion could push this back to the mid-2030s, but timelines already appear tight and visibility remains low,” the TD Cowen report said.
The sum of all expansions will be more than one million barrels per day.y additional shIP performance as reported by TD Cowen.
Western Canada currently produces about 4.5 million barrels of oil per day. The country has an oil export potential of about 5.2 million barrels per day.
Alberta wants more
Alberta Premier Daniel Smith recent announcement possible provincial government pipeline proposal West Coast and discussion another revival Keystone XL pipeline, both described by TD Cowen as “blue-sk”“y” because both are hypothetical, highly uncertain, and would require several years of development if they actually came to fruition.
Smith wants the new West Coast pipeline to reach global markets and provide greater export capacity in hopes of significantly boosting the province's oil industry.
“To further complicate matters, the concept of reviving Keystone XL was recently raised by Prime Minister Mark Carney with US President Donald Trump,” the report said.
That could indicate the country is feeling less confident in its ability to pursue a new pipeline project, the report said, given its clear goal of diversification outside the United States.
This week the International Energy Agency forecast a significant glut of oil worldwide, with supply potentially exceeding demand by 2.4 million barrels a day this year and by four million barrels. per day next year as the US, Brazil, Canada and other countries produce more oil.
At the same time the Paris baseThe agency expects global oil consumption to rise by 788,000 barrels per day this year and by 770,000 barrels per day in 2026.
Enbridge is one of the companies providing advice to the Alberta government on its potential pipeline project, such as testing the viability and business case for the new project.port project.
“They take time to develop.“There are a lot of considerations,” Gruding said.
Among the most important factors determining supply is demand from oil companies, as well as their willingness to sign long-term contracts to use the new pipeline.
At the moment, with so many new pipelinesace is already expected in the coming years, it is difficult to predict how much commitment companies are willing to make.
