Enbridge is taking a serious look at converting its Southern Lights pipeline, which currently transports diluent northwest from Illinois to Alberta, to a 150-Mb/d crude oil pipe that would flow southeast. The potential reversal of Southern Lights is made possible by the facts that Western Canadian production of natural gasoline and condensate — two leading diluents — has been rising fast, and that demand for piped-in diluent from the Lower 48 is on the wane. Alberta producers could sure use more crude pipeline capacity out of the region — and getting crude down to the U.S. Midwest would give them good access to a variety of markets. With Western Canadian diluent production increasing fast, maybe Kinder Morgan’s Cochin Pipeline, another diluent carrier, could also be flipped to crude service later on. Today, we consider how Southern Lights’ conversion/reversal might help.