US midcon imports soar amid Canadian supply

US midcontinent crude imports swelled to their highest volume on record amid rising Canadian pipeline capacity in the region.

The surge in Canadian crude flows followed a 100,000 b/d expansion on an Enbridge line crossing the US-Canadian border and preceded the expected startup of another two expansions to the company's pipelines into the northern midcontinent.

Imports into the midcontinent increased in the week ending 3 October by 520,000 b/d to 2.528mn b/d, higher by 290,000 b/d than the previous record, set 12 September, according to the Energy Information Administration (EIA). The EIA has tracked crude imports to the region since 1990.

Crude runs at regional refiners held effectively flat over the period, higher by 3,000 b/d to 3.46mn b/d, but crude in storage increased the largest volume in more than three years. Midcontinent crude inventories increased by 3.1mn bl to 91.6mn bl.

Total US imports of Canadian crude over the same period rose by 494,000 b/d to 3.248mn b/d.

Enbridge has completed work on its Line 3 to increase cross-border volumes by 100,000 b/d as it awaits a presidential permit for a planned expansion on its 450,000 b/d Line 67, moving heavy crude from Hardisty, Alberta, to Superior, Wisconsin.

The midstream company previously disclosed plans to begin line fill this month on Flanagan South, its 600-mile pipeline connecting Illinois to the crude oil storage hub in Cushing, Oklahoma, at an initial capacity of 600,000 b/d. Project design allows an ultimate capacity of 880,000 b/d.

The line will in turn fill a new twin to the joint venture Seaway pipeline, adding 450,000 b/d of heavy Canadian crude capacity for US Gulf coast refiners.

Enbridge also plans to soon begin service to Montreal, Quebec, on its expanded and reversed 300,000 b/d Line 9 project. The company warned earlier this week plans to begin commercial service in November may slip as it works through final stages of Canadian regulatory review. That pipeline will initially deliver light crudes to Montreal refiners.

Though destined for Canadian customers, the company's 2.5mn b/d Mainline system, Canadian crude's principal doorway to the region, passes through Superior, Wisconsin, on its way into the midcontinent or on to Sarnia.

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