Canadian crude to stay in US: Enbridge, Enterprise

Canadian crude arriving by pipeline to the US is likely to stay and be refined on the Gulf coast and not head overseas, Enbridge and Enterprise Products Partners executives said today.

"I think its natural home is here," said Enterprise Products Partners chief operating officer Jim Teague.

Enterprise and Enbridge's new 450,000 b/d Seaway twin line is currently carrying 100pc heavy crude to the Gulf coast. A connection with Enbridge's 600,000 b/d Flanagan South line allows Canadian crude to reach Texas refiners. Together, the lines mark a major new conduit for Canadian crude to reach the US Gulf coast.

"This is an ideal market. My view is that most of the crude is certainly going to be refined and kept in the Gulf coast," Enbridge chief executive Al Monaco said. Still, "It's always possible if margins will allow that Canadian crude will be exported … but I think the vast majority will stay in the Gulf coast."

Enbridge's marketing arm Tidal Energy Marketing last year said it had acquired a license to export Canadian crude from a US port in limited quantities. Enbridge said at the time the exports would be small and make up less than 1.5pc of the company's total US shipments.

Monaco also said Enbridge would be interested in expanding to the eastern Gulf coast, serving refineries in Louisiana.

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