• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 23 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 hours How Far Have We Really Gotten With Alternative Energy
  • 9 days They pay YOU to TAKE Natural Gas
  • 5 days What fool thought this was a good idea...
  • 8 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 14 days The United States produced more crude oil than any nation, at any time.
Uzbekistan’s Big Gold Bet Looks Set to Pay Off

Uzbekistan’s Big Gold Bet Looks Set to Pay Off

Uzbekistan, the world's top gold…

Enbridge Sells New Canadian Crude Grade To US, But No One’s Buying

Enbridge Inc has started offering the shipping of a new Canadian crude blend via pipeline to the U.S., but no refiner has bought any amount of the new grade so far, due to uncertainties over quality and price and how it would be affected by commingling with other types of crude oil shipped by the same line.

According to trading sources quoted by Reuters, Enbridge has been offering shippers since the end of last year the option to ship a new blend, Canada Heavy Sweet (CHS), on the company’s Line 3, which has the capacity to ship up to 390,000 barrels per day of mostly light crude grades from Alberta, Canada, to Superior, Wisconsin. Line 3 is currently being used below its capacity, and Enbridge’s offer to ship more of the heavy sweet grade is an attempt to alleviate congestion at the 2.85-million-bpd Mainline, which carries most of the Canadian exports to the US, Canadian traders told Reuters.

According to trading sources, it was BP that had suggested the light sweet-heavy crude blend to Enbridge. The blend could be used at BP’s large refinery in Indiana, Reuters sources say.

BP’s Whiting refinery in northwest Indiana has a production capacity of 430,000 bpd and is equipped to process increased amounts of heavy crude oil, according to BP’s website.

Related: The Secrets Behind Russia’s 2016 Oil Success

However, no refiner has acquired Canada Heavy Sweet so far, although some have inquired after the grade, a source at a Canadian oil logistics company told Reuters. Apart from uncertainties over the quality and costs for refining the new blend, refiners would also need cheaper prices.

The lack of enough capacity to export crude and the more expensive oil sands projects have further widened the discount at which Canadian oil trades to WTI. Most recently, Norway’s Statoil said it was selling its oil sands projects, citing profitability concerns.

At the end of November, Canada’s Prime Minister Justine Trudeau conditionally approved two new pipeline projects that are expected to increase Canada’s export capacity via pipeline as oil sands production grows.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News