Suncor Energy will deliver a cargo consisting of 550,000 barrels of crude oil to China on a tanker from the United Arab Emirates, which recently arrived at the Port of Vancouver to take on the first cargo destined for international markets since the expansion of the Trans Mountain pipeline.
Suncor Energy and Aframax tankers
Reuters reported that Suncor had been leasing Aframax tankers with the aim of marketing its crude directly in international markets, without the need for intermediaries. This strategic move is aimed at optimizing sales and improving profit margins.
However, due to the lack of availability of pilots and tugboats at the port of Vancouver, as well as cargo restrictions, the Aframaxes were limited to loading only 550,000 barrels instead of their full capacity of 800,000 barrels, shipbrokers told Reuters.
It is known that the expanded Trans Mountain pipeline pipeline is known to have increased its original capacity from 300,000 barrels per day to 890,000 barrels per day. This increase allows crude oil to be transported from the Alberta tar sands to the Pacific coast of British Columbia, tripling the pipeline’s original capacity.
Trans Mountain Pipeline Expansion
The Canadian federal government acquired Kinder Morgan’s Trans Mountain (TMX) pipeline expansion from Kinder Morgan in 2018, along with other related pipeline and terminal assets, for a cost of US$3.3 billion. Since then, expansion costs have quadrupled, reaching nearly US$23 billion.
In addition, the expansion project faced numerous delays and legal challenges from activist groups, leading many potential beneficiaries to lose hope for its completion. However, despite delays and opposition, the new Trans Mountain infrastructure began operating this month and there are warnings that it could reach full capacity soon, as oil sands producers ramp up production in response to the newly available capacity.
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Source: oilprice
Photo: Shutterstock
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