Exxon and Canada-based crude pipeline operator Enbridge have been sued in Illinois federal court docket on Tuesday over claims they barred a competitor from constructing a terminal to ship oil by barge from the Chicago space to refineries within the Midwest and Gulf of Mexico.
The antitrust lawsuit from power infrastructure developer Ducere seeks greater than $11 million in damages for work the Illinois firm stated it already paid for on the undertaking and for misplaced future earnings.
Exxon, Enbridge and their three way partnership Mustang Pipe Line LLC excluded Ducere from the crude oil transportation market in Chicago by “refusing to permit it to construct a terminal that would offer one other avenue for transporting crude to refineries south of Chicago,” the lawsuit stated.
Representatives for Exxon and Enbridge didn’t instantly reply to requests for remark.
A consultant from Ducere declined to remark.
Ducere’s criticism stated it proposed in 2020 to construct a terminal that will hook up with Mustang’s pipeline and permit Ducere to move crude on barges. Ducere stated Exxon owns 70% of Mustang, and Enbridge owns 30%.
The lawsuit stated Mustang’s board declined in early 2023 to maneuver ahead with the terminal, reversing an earlier settlement between the businesses.
It stated the “group boycott” by Exxon, Enbridge and Mustang denying it entry to Mustang’s crude oil pipeline unlawfully restricted competitors within the regional power transportation market.
Ducere stated transport crude by barge on U.S. waterways is “vastly underutilized.” The proposed terminal would enhance crude oil transportation capability whereas lowering reliance on rail transport, the lawsuit stated.
The case is Ducere LLC v. Enbridge (U.S.) Inc et al, U.S. District Courtroom for the Northern District of Illinois, No. 1:24-cv-01217.
(Reuters – Reporting by Mike Scarcella; Enhancing by David Bario and Daniel Wallis)
