The Trans Mountain Pipeline transported 20 tanker loads of crude oil from Canada’s Pacific coast during the expanded link’s first month of operation, slightly below the company’s expectations, Reuters reported. report The announcement was made on Monday, citing data from tanker tracking providers LSEG, Vortexa and Kpler.
The Trans Mountain Pipeline expansion increased the capacity to transport crude oil from Alberta’s oil sands to British Columbia on the Pacific coast from 300,000 barrels per day to 890,000 barrels per day, three times that of the original pipeline.
The increased shipping capacity will give Canadian crude oil greater access to international markets. The two main destinations for the oil flowing through Canada’s expanded pipeline were expected to be the U.S. West Coast and Asian markets.
And it had been a month since the Trans Mountain Expansion Project (TMX) began operations.
A total of 20 ships loaded with crude oil were transported via TMX to Canada’s west coast, significantly more than the 22 expected by the company, which is currently run by the Canadian federal government.
Analysts said initial trading volumes were slightly lower than expected, but this could be due to the business being in its early stages.
Traders and market analysts are closely watching Asian demand for Canadian crude as TMX gives Canadian crude producers an outlet into Asian markets and the U.S. West Coast.
The 20 tankers that left Canada’s Pacific coast loaded with TMX crude were headed mainly to the U.S. West Coast and Asia. Some of the Aframax cargoes – mid-sized vessels that can hold about 550,000 barrels each – were loaded onto larger tankers bound for India and China, according to data from LSEG, Vortexa and Kpler cited by Reuters.
Rongsheng Petrochemical has become the latest Chinese oil refinery to buy crude oil to be shipped to Canada’s Pacific coast via the expanded Trans Mountain pipeline.
The heads of major energy companies say the pipeline will boost prices for heavy Canadian crude oil for years to come.
Article by Charles Kennedy of Oilprice.com
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