Exxon and Enbridge Sued in Illinois Court Over Alleged Antitrust Violations
Exxon and Enbridge Accused of Blocking Competitor
Energy giants Exxon and Enbridge are facing a lawsuit in Illinois federal court, accused of preventing a competitor from constructing a terminal for shipping oil by barge from Chicago to Midwest and Gulf refineries. The lawsuit, filed by energy infrastructure developer Ducere, seeks over $11 million in damages for work already completed and lost future profits.
Allegations of Market Exclusion
The lawsuit alleges that Exxon, Enbridge, and their joint venture, Mustang Pipe Line LLC, excluded Ducere from the Chicago transportation market by refusing to allow the construction of a terminal that would provide an alternative route for transporting crude to refineries south of Chicago.
Response from Involved Parties
Representatives for Exxon and Enbridge did not immediately respond to requests for comment, while a representative from Ducere declined to provide a statement.
Details of the Lawsuit
Ducere had proposed to build a terminal in 2020 that would connect to Mustang’s pipeline and enable the transportation of crude on barges. The lawsuit claims that Mustang’s board rejected the proposal in early 2023, reversing an earlier agreement between the companies.
Impact of the Alleged Actions
The lawsuit contends that the actions of Exxon, Enbridge, and Mustang unlawfully restricted competition in the regional energy transportation market by denying Ducere access to Mustang’s crude oil pipeline.
Proposed Solutions
Ducere believes that shipping crude by barge on U.S. waterways is underutilized and that their proposed terminal would increase crude oil transportation capacity while reducing reliance on rail transport.
Legal Proceedings
The case, titled Ducere LLC v. Enbridge (U.S.) Inc et al, is being heard in the U.S. District Court for the Northern District of Illinois under case number 1:24-cv-01217.
