* Enbridge ( ENB ) sees India, Africa as key markets for
re-exported Canadian crude
* Company's Mainline expansion projects will carry more
Canadian oil to the US
* Canadian oil output forecast to rise by 1 million bpd
by 2035
By Amanda Stephenson
HOUSTON, March 23 (Reuters) - Gulf Coast re-exports of
Canadian heavy crude will increase significantly in the coming
decade as a result of approved and proposed pipeline
projects set to carry more oil from Canada to the U.S., the head
of Enbridge's ( ENB ) crude oil pipeline division said on Monday.
The opening of Canada's Trans Mountain pipeline in 2024
redirected a significant share of Canada's export-bound crude
oil towards British Columbia's Pacific coast and away from U.S.
Gulf Coast terminals, said Colin Gruending, president of liquids
pipelines for Canadian pipeline company Enbridge ( ENB ).
But Enbridge's ( ENB ) planned expansion of its Mainline crude oil
pipeline network means some of Canada's new export capacity will
be sent through the Gulf to international markets, Gruending
said in an interview at the CERAWeek by S&P Global conference in
Houston.
Between 200,000 and 400,000 barrels per day of Canadian
crude is currently re-exported off the Gulf Coast, Gruending
said.
"But forecasts assume that will grow," he said.
Enbridge ( ENB ) believes India as well as many African nations
could look to meet their demand for oil in the coming decades by
buying re-exported Canadian crude, he said.
The company's crude oil network already transports about 30%
of North America's crude oil output. Last fall, it approved
expansions for its Mainline and Flanagan South pipelines to the
U.S., which will add a combined 250,000 bpd of capacity for
Canadian heavy oil shippers moving oil to the U.S. Midwest and
Gulf Coast.
The additional capacity is expected to come online in 2027.
It is also gauging commercial interest for a second phase of
its Mainline expansion, which it has said could be in service in
2028 and would add another 250,000 bpd of capacity.
At the same time, Enbridge's ( ENB ) competitor South Bow ( SOBO ) is
proposing to partner with U.S. pipeline company Bridger Pipeline
to revive parts of the cancelled Keystone XL pipeline. That
project would increase Canada's current oil exports to the U.S.
by more than 12%, if it goes ahead.
In addition, the Trans Mountain pipeline from Alberta to
Canada's west coast is planning a series of enhancements that
could increase its capacity by 360,000 bpd.
Enbridge's ( ENB ) own forecast predicts Canadian oil production
will increase by 1 million bpd by 2035.
Canada produced on average 5.3 million bpd of crude oil in
2025, according to the Canada Energy Regulator.