MOSCOW (MRC) -- Pipeline operator Enbridge Inc said it has reached a deal with shippers to temporarily store crude in North America’s largest oil pipeline network, according to a filing, as Canadian producers scramble to respond to weak refinery demand and low prices, reported Reuters.
Enbridge said the agreement would temporarily provide roughly 912,000 barrels of storage on its Canadian Mainline system starting June 1, according to a May 1 filing with the Canadian Energy Regulator.
The Mainline, Canada’s longest oil pipeline system, has capacity for nearly 3 million barrels per day, moving western Canadian oil to US refiners.
As MRC wrote previously, in late December 2019, Enterprise Products Partners and Enbridge agreed to jointly develop a deepwater crude oil export terminal offshore Houston, the latest sign of consolidation in the crowded field of US Gulf Coast export projects.
We also remind that Enterprise Products Partners' Mont Belvieu propane dehydrogenation unit in Texas restarted from planned maintenance in the first week of December, 2019. The PDH unit went offline for maintenance on November 13. That day, the company said in a filing with the Texas Commission on Environmental Quality that the RAC "B" turbine shut down, which resulted in flaring. The flaring was estimated to last 72 hours. The unit has a capacity of 750,000 mt/year, according to Platts data.
Propylene is the main feedstock for producing polypropylene (PP).
According to MRC's ScanPlast report, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.
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