Enbridge sees oil pipeline squeeze despite low prices

Thu Jan 22, 2015 12:47pm EST
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CALGARY, Alberta Jan 22 (Reuters) - Enbridge Inc Canada's largest pipeline operator, is nearing full capacity for light crudes on its North American pipeline system and expects crude-by-rail shipments from Western Canada to continue to rise, the head of its pipeline division said on Thursday.

Speaking at an investment conference in Whistler, British Columbia, Guy Jarvis the company expects production from Western Canada will continue to rise despite low oil prices, squeezing available space on its network, which takes the bulk of Canada's exports to the United States.

Jarvis said Enbridge, which has been rationing space for heavy crudes "for many, many months" is now also approaching its maximum capacity for light crude as well, forcing more producers to reach refineries with rail shipments, which the company expects to climb to 500,000 bpd before new lines are completed. (Reporting by Scott Haggett)