Enbridge Inc., Canada’s largest pipeline operator, wouldn’t need to build the Northern Gateway project to export Alberta’s oil-sands crude for almost a decade if TransCanada Corp.’s Keystone XL is approved this year, according to IHS CERA, an energy research company.
Enbridge Inc.’s plans to expand U.S. pipeline capacity may help generate as much as $15 billion for Canadian oil-sands producers such as Suncor Energy Inc. and boost government tax revenue as Alberta crude begins to command a higher price.
Enbridge Inc. and Enterprise Products Partners LP said they will team up to increase the ability of U.S. refineries on the Texas coast to get oil from a storage depot in Cushing, Oklahoma, the delivery point for most U.S. crude.
Enbridge Inc., the biggest Canadian pipeline company, and Enterprise Products Partners LP plan to expand crude shipments to the U.S. Gulf Coast as supplies increase from Canada’s oil sands and the Bakken Shale in the Northern Plains.
It’s an article of faith among supporters of the proposed Keystone XL pipeline: approving the project would allow the U.S. to use more crude from Canada and less from Venezuela and other unfriendly regimes.