October 28, 2021 – Financial Post
Canadian oil producers eye new pipeline route to Gulf Coast as Marathon reverses Capline conduit
By: Geoffrey Morgan
Ohio-based Marathon Pipelines LLC filed tariffs for transportation of crude oil on its Capline pipeline from Patoka, Ill. to St. James, Louisiana for rates effective Oct. 25, according to RBN Energy, an energy markets consultancy…
…“This will certainly help to keep the differentials tighter than what we’ve seen in the past because you’ll have more egress optionality out of Western Canada,” said Martin King, senior analyst with RBN Energy, adding he expected the reversal could help differentials trade within the US$12 per barrel to US$14 per barrel range.
Marathon did not respond to a request for comment on when the reversed Capline would begin flowing large volumes of heavy crude oil. The project is scheduled to begin shipping small volumes of light oil this year, followed by heavier blends in 2022.