Canada Energy Regulator tells Enbridge to suspend open season on pipeline system

The Canada Energy Regulator has ordered Enbridge Inc. to suspend its open season for service on its Canadian Mainline oil pipeline system.

The regulator said Friday it came to the decision after reviewing letters from more than 30 parties.

It says Calgary-based Enbridge may not continue its open season process until an application for firm service, including all associated tolls and terms and conditions of service, have been approved.

There was growing opposition from major Canadian oil producers to Enbridge's plan to convert most of its Mainline system to long-term contracts.

Letters of complaint were sent to the regulator by Canadian Natural Resources Ltd., Suncor Energy Inc., Shell Canada and MEG Energy Corp., along with the Explorers and Producers Association of Canada.

In its submission, Suncor said the open season compels shippers that wish to maintain access to transportation on the Mainline to enter into irrevocable, binding, long-term firm contractual commitments on the basis of terms and conditions of access, and tolls, that have neither been settled through meaningful negotiation nor approved by the regulator.

Enbridge announced the open season on Aug. 2 and said it would accept bids until Oct. 2 from shippers who wished to enter into contracts of from eight to 20 years for priority transport on the Mainline, with discounts available based on contract length and volumes.