The Canadian government said it will not interfere with Interprovincial Pipeline Co.'s decision to shut its crude-oil pipeline running from Sarnia to Montreal.
In a recommendation to Energy Minister Jake Epp, made in April but just released recently, Canada's National Energy Board said: "There are no immediate security of supply reasons requiring government intervention to keep the crude oil pipeline operating between Sarnia and Montreal."After studying that recommendation, Mr. Epp said "the conclusions of the board's study affirm our government's policy that markets should be allowed to work without excessive regulations and unnecessary government intervention."
Interprovincial decided to shut the pipeline April 26, because refiners in eastern Canada had found it cheaper to import foreign crude than to pay for crude from western Canadian producing regions.
The 517-mile pipeline once brought carried more than 300,000 barrels a day, but deliveries had dropped to about 25,000 b/d.
The final delivery is scheduled for mid-July.
Interprovincial is investigating other uses for the pipeline, including reversing the flow, or using it to transport other materials, such as natural gas.