Sinochem Group announced the purchase of the first batches of oil transported by the new Canadian pipeline. This pipeline system has been specifically designed to facilitate the transfer of crude oil from Alberta, an inland region, to the shores of the Pacific Ocean, from where it can be exported.
The new Canadian Trans Mountain Pipeline
With Sinochem acquiring 550,000 barrels from producer Suncor Energy Inc, the shipment is scheduled to be shipped through the Trans Mountain Expansion pipeline between May and June. This high quality heavy crude oil has characteristics comparable to those of Basrah oil from Iraq.
The Trans Mountain Trans Mountain represents the most significant addition to the country’s pipeline system in the last ten years, and is expected to nearly triple current transportation capacity. This will allow for increased sales of Canadian crude oil to markets in Asia and the West Coast of the United States.
Increase in Canadian crude oil increase projections
Specialists anticipate that the crude oil purchased by Sinochem will be processed in coking units, given its quality and similarities with Iraqi Basrah crude. This operation highlights the interest in and need for the canadian oil industry to diversify its markets through the expansion of Trans Mountain, which will allow an increase in capacity of up to 590,000 barrels per day (bpd), favoring access to the international market from the west coast of Canada.
With a projected capacity of close to 900,000 bpd once operational, the Trans Mountain pipeline is scheduled to come online towards the end of this year, offering producers hope to mitigate the price differentials that Canadian crude has suffered compared to West Texas Intermediate (WTI) due to transportation constraints.
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Source and photo: Trains Mountain
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