Canada gets crude oil from Enbridge Line 9B

A refining company in eastern Canada has started receiving crude oil via Line 9B, a newly reversed pipeline of Enbridge Inc. The refineries in eastern Canada prefer to make use of cheaper oil produced in western parts of Canada and the US Midwest.

Refineries in Quebec are relying on crude supplies from North America. Enbridge's pipeline will run below capacity in December and January.

Enbridge's Spearhead pipeline runs from Illinois to Cushing, Oklahoma, the largest storage hub in the US. Enbridge Inc has started reversing 300,000 barrel-a-day pipeline in 2011 as refineries in eastern Canada have decided to receive oil at cheaper prices. Western Canada oil is priced lower than foreign crude.

After reversing pipeline ramps up to full capacity, refineries such as Suncor Energy Inc and Valero Energy Corp are relying on crude supplies from North America as reported by Bloomberg.

The eastern Canada refinery is said to have received 60,000 barrels of crude on Tuesday alone. The pipeline supply included Bakken oil from North Dakota. Generally, landlocked crudes are priced cheaper than waterborne supplies.

Enbridge's Line 9 pipeline is with 762mm (30 inches) diameter with a capacity of 240,000 barrels per day. It extends from Samia, Ont, to Montreal. The Line 9 reversal is the Enbridge's Eastern Canadian refinery access.

According to Enbridge, Line 9 plays a significant role for supplying crude oil to eastern Canada refineries. It helps in protecting jobs and contributing to the Canada's economy. The pipeline was built in 1976 to bring oil from Sarnia, Ont, to Montreal.

After a long negotiation and testing, the crude oil produced in western Canada is reaching refineries in eastern Canada in Enbridge's Line 9B.

Beginning with December 2015, the oil pumping will bring 300,000 barrels of oil per day from Alberta to Montreal's refineries. However, the date of commencement of oil pumping is divulged by Enbridge Inc.

Eric Prud'Homme, a spokesman at Enbridge, said first deliveries will be made to refineries in Montreal and Quebec, as reported by CBC.

The flow was reversed in 1998 owing to cheaper foreign oil as imports were transported from eastern ports to western refineries.

Now, Canadian oil price is cheaper than imports propelling refineries in eastern Canada to receive oil produced in eastern Canada. Enbridge has sought change in the direction of flow and requested National Energy Board in this regard.

The pipeline of Enbridge is running below capacity in December 2015 and January 2016 and this is the first time in the past two-and-a-half years. Graham White, a spokesman at Enbridge, denied to provide more details in this regard.