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CALGARY — Enbridge Inc has lowered oil-shipping requirements on its Mainline pipeline by nearly two-thirds, the company confirmed on Wednesday, a move likely to satisfy smaller producers who feared they would be elbowed out by the company’s initial bigger requirements.

Enbridge now requires minimum volume commitments of 2,200 barrels per day (bpd), down from the 6,000 bpd commitment it previously sought, Enbridge spokesman Jesse Semko told Reuters. The company confirmed the change to Reuters after sources said Enbridge had made the adjustment.

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Enbridge plans to turn the Mainline, North America’s largest oil-shipping network, from a common carrier system that is open to all shippers, to one that is mostly contracted for up to two decades. The initial terms raised concerns among smaller shippers, which worried about meeting Enbridge’s time and volume minimums.

But since spring, Enbridge has broadly consulted the industry and eased the stringent requirements, sources added. They spoke on condition of anonymity because Enbridge required non-disclosure agreements about its plans.

The commitments are for between eight and about 20 years, unchanged from its earlier terms.

The company plans to start open season, a period of soliciting bids for its Mainline space, in July. The change, subject to approval by the National Energy Board regulator, would take effect in 2021.

© Thomson Reuters 2019