24 February 2010 15:04 [Source: ICIS news]
TORONTO (ICIS news)--NOVA Chemicals has joined a fight against a toll surcharge on an Enbridge pipeline system that supplies its chemical production in southern ?xml:namespace>
The chemicals major said it was seeking intervener status on a petition before the US Federal Energy Regulatory Commission (FERC) for exemption from toll increases on the Enbridge Energy and Lakehead pipeline systems.
NOVA sources crude oil and other hydrocarbon feedstocks for its flexi-cracker at Corunna, near
However, pipeline firm Enbridge said in its filing with FERC that the toll hike was needed to help pay for the $1.24bn (€918m) US portion of its 450,000 bbl/day “Alberta Clipper” oil pipeline from Alberta to Wisconsin.
That pipeline project was based on cost recovery through tariff surcharges, it said.
Clipper, which would form part of Enbridge’s existing US and Canadian pipeline systems, was prompted by growing supplies from Alberta's oil sands sector, the company said. It is almost complete and due to go into service on 1 April.
Enbridge noted the petitions by NOVA and others, but said it believed them to be without merit and requested FERC to dismiss them.
Canadian industry analysts said the case may also hinge on whether Enbridge can show that the pipeline was really needed in the first place - a difficult case to make, given the slowdown in
A NOVA spokesperson said the company could not immediately provide additional comment. Enbridge’s legal counsel in charge of the pipeline case also did not return a call requesting additional comment.
($1 = €0.74)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections