Pipeline Price War Brews in Canada as Enbridge Cuts Rates on Oil

A pipeline price war is brewing in Canada, with Enbridge Inc. slashing the rates it charges producers to ship crude on its Mainline system before a rival line starts up next year.

The cost to send heavy crude from the Canadian oil hub of Hardisty, Alberta, to terminals in Flanagan, Illinois, will fall about 12% to $28.80 per cubic meter on July 1, based on current exchange rates, Calgary-based Enbridge said in a regulatoryfiling. Flanagan is a key stopping point for Canadian oil on its route to refiners on the US Gulf Coast.

Canadian oil producers who have …