Michigan panel approves Enbridge Line 5 plan

: Crude oil, LPG
18/12/19

A Michigan panel today approved Enbridge's $500mn plan to build a tunnel under the Straits of Mackinac to replace a section of its Line 5 pipeline.

The Mackinac Straits Corridor Authority, a new panel established to oversee the tunnel project, approved a proposed plan from Enbridge and the state of Michigan to build the structure to house Line 5.

The 540,000 b/d Line 5 crude and NGL pipeline will take five years to build, Enbridge said today.

The plan comes amid growing concern from environmental groups, local residents and some lawmakers that the 65-year-old pipeline system threatens the ecologically sensitive region.

The panel heard public testimony today both in favor and opposed to the plan. The hearing was held in St. Ignace, Michigan, which is on the Upper Peninsula.

Opponents to the project said that the approval process was being rushed to be completed during governor Rick Snyder's term in office and urged the panel to delay a decision. The incoming governor of Michigan, Democrat Gretchen Whitmer, has taken a hard stance against Line 5.

Opponents also said that Line 5 should be permanently decommissioned because of the risk to water supply and cited a 2010 spill on Enbridge's Line 6B which leaked 19,500 bl of crude and polluted the Kalamazoo river, which flows into Lake Michigan.

Proponents at the hearing said Line 5 has operated safely for decades, provides vital propane for heating and that building a tunnel will provide further protection from oil spills. Several Enbridge employees in Michigan spoke in favor of the project.

Line 5 carries light crude, light synthetic crude and NGLs under the straits that separate Lake Michigan and Lake Huron, running from Superior, Wisconsin, to Sarnia, Ontario. Some of the crude moves as far east as Montreal, Quebec, on Enbridge's 300,000 b/d Line 9.

As it travels under the Straits of Mackinac, Line 5 splits into two 20-inch-diameter, parallel pipelines. Line 5 also feeds refineries in Detroit, Michigan, and Toledo, Ohio. The system also carries NGLs for propane production to a facility in Rapid River, Michigan.

Concerns about a spill on Line 5 were exacerbated earlier this year when a boat anchor caused three small dents on the system. Enbridge said the structural integrity of the pipelines was not compromised.

Enbridge said that the tunnel will have one-foot-thick concrete walls, making the chances of a leak into the Straits "virtually zero."

The company is planning to begin collecting rock and soil samples from below the lakebed in the Straits in the spring of 2019, essentially starting the construction process. The target completion date for the tunnel is 2024.

Once a tunnel is built and placed into service, Enbridge would permanently deactivate the dual pipelines under the Straits. The plan approved today allows Enbridge to operate the current Line 5 until the tunnel is constructed.

Enbridge came to an agreement last year with Michigan to boost safety measures on Line 5, including replacing a portion of the system that crosses the St Clair river.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/05/08

Permian output could plateau sooner: Occidental CEO

New York, 8 May (Argus) — Oil production from the Permian basin could plateau sooner than expected if operators keep talking about reducing activity levels in the wake of lower oil prices, warned the chief executive of Occidental Petroleum. Vicki Hollub said she previously expected to see Permian output growing through 2027, with overall US production growth peaking by the end of the decade. "It's looking like with the current headwinds, or at least volatility and uncertainty around pricing and the economy, and recessions and all of that, it's looking like that peak could come sooner," Hollub told analysts today after posting first quarter results. "So I'm thinking right now the Permian, if it grows at all through the rest of the year, it's going to be very little." Occidental is reducing the midpoint of its annual capital spending guidance for 2025 by $200mn on the back of further efficiency gains. The US independent also plans to trim domestic operating costs by $150mn. "We continue to rapidly advance towards our debt reduction goals, and we believe our deep, diverse portfolio of high-quality assets positions us for success in any market environment," Hollub said. Occidental closed asset sales of $1.3bn in the first quarter and has repaid $2.3bn in debt so far in 2025. Occidental produced 1.4mn b/d of oil equivalent (boe/d) in the first quarter compared with nearly 1.2mn boe/d in the same period of last year. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to grant partial tariff relief to UK

25/05/08

Trump to grant partial tariff relief to UK

Washington, 8 May (Argus) — The US will carve out import quotas for UK-produced cars and, eventually, reduce tariffs on UK steel and aluminum, under a preliminary deal US president Donald Trump and UK prime minister Keir Starmer announced today. The Trump administration will allow UK car manufacturers to export 100,000 cars to the US at a 10pc tariff rate, instead of the 25pc tariff to which all foreign auto imports are subject. The US and the UK will negotiate a "trading union" on steel and aluminum that will harmonize supply chains, US commerce secretary Howard Lutnick said. The US commended the UK government on taking control of Chinese-owned steelmaker British Steel last month. As a result of that action, under yet to be negotiated arrangements, the US would reconsider the UK's inclusion in its 25pc tariffs on steel and aluminum, the White House said. Starmer, speaking after the ceremony, told reporters that US tariffs on the UK-sourced steel and aluminum would, in fact, fall to zero. Trump announced the deal during a ceremony at the White House, with Starmer phoning in. The two leaders suggested that their preliminary deal was as significant as the end of World War II in Europe, 80 years ago. But that deal, which Trump described as "full and comprehensive" hours before its announcement is anything but that. Under the "US-UK Agreement in Principle to negotiate an Economic Prosperity Deal", the US will maintain the 10pc baseline tariff on nearly all imports from the UK that went into effect on 5 April, Trump said. The UK, Trump said, would lower the effective rate on US imports to 1.8pc from 5.1pc. The actual details of the agreement are yet to be negotiated. "The final deal is being written up" in the coming weeks, Trump said, adding that it was "very conclusive". Boeing, beef and biofuel The UK would commit to buying $10bn worth of Boeing airplanes, Trump said. He described the UK market as "closed" to US beef, ethanol and many other products, and said that the UK agreed to open its agricultural markets as a result of his deal. US ethanol exports to the UK, in fact, rose by 23pc year-on-year in March. Under the deal, the UK would expand market access to US ethanol, creating $500mn more in US exports, the White House said. The UK will reduce to zero the tariff on US-sourced ethanol, the UK Department of Business said, adding that "it is used to produce beer". Trump previewed the preliminary deal with the UK as the first of the many trade agreements the US administration is negotiating with many other countries. Trump contended today that there are trade talks underway with the EU and expressed confidence that the US-China trade discussions expected over the weekend would produce results. But Trump added that he will not lower the high tariffs on imports from nearly every US trade partner he imposed last month and described the UK's 10pc tariff rate as a favor to that country. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sonatrach Augusta refinery restart extends into May

25/05/08

Sonatrach Augusta refinery restart extends into May

Barcelona, 8 May (Argus) — Crude deliveries to Algerian state-owned Sonatrach's 198,000 b/d Augusta refinery in Italy were higher in April, but it appears a full restart from planned works will take longer than initially expected. Crude deliveries last month were around 70,000 b/d, up from 20,000 b/d in March. Receipts averaged 95,000 b/d in January-April, down from 160,000 b/d overall in 2024. The refinery has been under a planned five-year maintenance shutdown since the end of January, the first turnaround since shortly after Sonatrach bought the plant from ExxonMobil in 2019. Sonatrach initially said the facility would be back online by 30 April, with units restarting in two phases. But the company in an updated note to local authorities said an atmospheric distillation unit, propane deasphalter, hydro-desulphuriser, propane splitter and other secondary units would potentially flare on restart up to 31 May. One of these segments is the butamer unit, which caught fire in April . It is unclear if the fire added to the length of the overall stoppage. Sonatrach has not replied to queries on the matter. It was anticipated the turnaround would be a little quicker than in 2019 (see chart), but the two periods of maintenance now appear to be roughly similar. Crude delivery last month included over 45,000 b/d of Saudi Arab Light, 15,000 b/d of Kazakh Kebco and over 5,000 b/d of Algerian Saharan Blend. Argus assessed these at a weighted average gravity of 33.7°API and 1.5pc sulphur content, compared with 36.5°API and 0.9pc sulphur in February, before receipts all but stopped for the works. Receipts averaged 34.7°API and 1.2pc sulphur in January-April, compared with 35.2°API and 0.9pc sulphur overall in 2024. The pace of delivery in May is slow. Around 750,000 bl of Arab Light has discharged but no tankers are signalling arrival. By Adam Porter Augusta crude receipts mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Saudi Arabia plan two Indian refineries

25/05/07

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Polish seaborne LPG imports rise on Russia embargo

25/05/07

Polish seaborne LPG imports rise on Russia embargo

The EU ban on some Russian imports led to higher utilisation of Poland's Baltic Sea terminals, writes Waldemar Jaszczyk London, 7 May (Argus) — Polish seaborne LPG imports surged in the first quarter as the country's Baltic Sea terminals became the market's main supply route following the EU's ban on Russian propane-butane mix and propane arrivals. But the growth was capped by reduced re-exports to Ukraine, softening domestic demand and more butane arriving from Russia. The four Baltic Sea terminals received 320,000t of LPG in January-March, up from 282,000t a year earlier, Kpler data show. European LPG distributor SHV's 900,000 t/yr Gdansk facility received 181,000t, and the Alpetrol-run 420,000 t/yr Gdynia terminal took 89,000t, up by 26pc and 37pc, respectively. Deliveries to state-owned fuel supplier Orlen Paliwa's 250,000 t/yr Szczecin terminal rose by 24pc to 37,000t but were below the 50,000-60,000 t/yr seen in previous years given modernisation works. The firm plans to raise Szczecin throughputs by 50pc to 400,000 t/yr by mid-2025. These offset a decline in imports to petrochemical producer Azoty's 437,000 t/yr propane dehydrogenation (PDH) complex in Police by more than a half to 19,000t. Azoty is negotiating a sale of the plant to Polish oil firm Orlen as it looks to cut debt accrued largely to develop it. The EU embargo on Russian LPG, which took effect on 20 December, boosted seaborne intake by forcing Polish importers to shift their supply routes to northwest Europe. Propane and propane-butane mix accounted for over 90pc of Russia's LPG exports to Poland, while normal butane and isobutane, which are not sanctioned, took the balance. Russia was the key supplier to Poland historically, with a 43pc share of all imports in 2024 at 1mn t/yr, according to Polish LPG association POGP. But weaker import demand as a result of stockbuilding prior to the embargo's start and reduced re-exports to Ukraine, which has shifted its supply routes to Danube river ports in the south, limited the increase in seaborne arrivals. And rising intakes of pure normal butane and isobutane from Russia by rail, which is then blended with propane and sold as autogas, has also weighed on Baltic imports. Russian butane deliveries averaged around 30,000 t/month in the first quarter compared with the more typical 80,000 t/month prior to sanctions. Poland seaborne LPG imports Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more