Oil companies such as Chevron, Canadian Natural Resources, and Suncor Energy are urging the operator of the expanded Trans Mountain pipeline to alter some crucial specifications to enhance the quality of the crude transported via the system. Their argument is that the current restrictions reduce the value of the oil transported and limit the possible destinations where it can be processed. The complaints come as the pipeline’s long-delayed expansion nears completion, with oil producers already unhappy about the steep fees they must pay to utilize the pipeline due, in part, to delays during construction that led to a significant increase in costs, reaching C$34 billion ($26 billion). Chevron, a purchaser of crude from the pipeline, claimed in a letter submitted to the Canada Energy Regulator that the vapor pressure restriction surpasses US Environmental Protection Agency caps on storage tank vapor pressures in California refineries, potentially preventing it from buying or processing crude from Trans Mountain for its two refineries in the state. In contrast, Suncor stated in a regulatory filing that the high vapor pressure threshold would cause firms to mix lower-value hydrocarbons with the crude injected into the pipeline, reducing the value of the oil transported via the system. Nonetheless, Cenovus Energy, another Trans Mountain shipper, argued in a statement that the pressure specifications were sensible. These complaints are impeding the pipeline’s start-up, given that oil producers have already grumbled about the exorbitant charges they must pay to utilize the pipeline. (Source: Bloomberg)
[Note: This summary combines multiple articles published by Bloomberg to provide a comprehensive overview of the issue.]
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