Enbridge's Houston terminal opens new gateway for Canadian oil exports

CALGARY — Canadian oil producers now have a direct route from northern Alberta to the heart of the US Gulf Coast refining and export industry following the opening of Enbridge’s Houston Oil Terminal.According to the Alberta Energy Centre, the terminal completes Enbridge’s integrated transportation network between the oilsands and Houston, home to North America’s largest concentration of refineries, storage facilities and marine export infrastructure.The facility, known as EHOT, entered service in July and is expected to give Canadian producers access to more refiners and additional routes to international buyers.“EHOT gives Enbridge’s liquids pipelines business a true Houston footprint,” Enbridge director of business development Matt Gagnon said in a statement.“It ties our system from Edmonton all the way to the US Gulf Coast.”The new terminal comes as Enbridge CEO Greg Ebel says North America’s energy sector is entering another period of expansion.“What is becoming increasingly clear is that the energy industry has re-entered a growth phase somewhat reminiscent of the 2012-15 time period,” Ebel said during the company’s second-quarter update on July 31..“As producers’ confidence improves and the policy environment becomes increasingly supportive of growing production, new infrastructure will be required to support future growth across the continent.”The US Gulf Coast region, known in the industry as PADD III, is the world’s leading refining hub for heavy oil — Canada’s most valuable energy export.It is also the centre of North America’s oil-export industry.Data from the US Energy Information Administration show Canada supplied roughly 20% of all oil imported into the Gulf Coast region so far this year, leaving considerable room for Canadian producers to expand their market share.Canadian heavy crude can be processed by Gulf Coast refineries or shipped through the region’s marine terminals to buyers overseas.“The US Gulf Coast hosts one of the most extensive clusters of energy infrastructure in the world, owing to its 140-year history at the centre of the petroleum industry,” said Joe Calnan, vice-president of energy at the Canadian Global Affairs Institute.“The refinery cluster in the US Gulf Coast boasts the greatest concentration of heavy, sour crude processing capacity anywhere in the world. Many of these facilities were designed to run heavy grades from Venezuela and Mexico, making them a natural fit for Canadian barrels.”By providing a direct connection to Houston’s refining, storage and marine-export network, the terminal gives Canadian producers access to more potential customers while opening additional pathways to global markets.

Enbridge's Houston terminal opens new gateway for Canadian oil exports

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