Relief comingfor Canadian oil lines, says NEB

Oil pipelines currently under construction should ease capacity constraints by late 2009, Canada’s National Energy Board has forecast.

The federal regulator said the oil lines ran full in 2008, carrying crude valued at C$127 billion to domestic and United States markets last year, but gas pipelines out of Western Canada had unused space.

“We’ve seen capacity constraints on oil pipelines for the past several years,” said NEB chairman Gaetan Caron.

“This will change toward the end of 2009 and into 2010 when pipelines previously approved by the board begin operation.”

The board said declining production from Western Canada, growing demand within the region and competition from other supply basins, especially in the western U.S., resulted in reduced gas flows.

—Gary Park