The much-delayed expansion of the Trans Mountain Pipeline (TMX) has reached the finish line with the arrival of an Aframax tanker at the Westridge Marine Terminal in Vancouver, BC. The vessel is capable of loading nearly 800 Mbbl, but is expected to depart with only 550 Mbbl because of restrictions in the port of Vancouver, which we explained back in August 2023. One of those significant impediments is the long journey to open water shown below. Thanks to all of those restrictions, the maximum vessel size that the port can handle is Aframaxes.
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You've Got Another Thing Comin', Part 2 - Trans Mountain Expansion Faces More Logistical Challenges
The 590-Mb/d Trans Mountain Expansion (TMX) project, which is inching closer to its planned early 2024 completion, has been one of the most eagerly anticipated energy infrastructure projects in recent Canadian memory. Preliminary tolls for shipping crude on the expanded pipeline system, submitted to the Canada Energy Regulator (CER) in June, are multiples higher than the tolls currently charged on the original 300-Mb/d Trans Mountain Pipeline (TMP), possibly undermining oil producers’ economics for shipping and exporting crude on the combined 890-Mb/d system. However, the higher tolls are not the only concern. Serious logistical challenges remain in the form of restricted tanker sizes, a circuitous route for ships traveling from the open ocean to the Westridge export terminal near Burnaby, BC, and even a very tight passage under two bridges, all of which will add costs and time for each exported barrel. In today’s RBN blog, we provide more details on the complexities surrounding crude oil exports via the Trans Mountain pipeline system.
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Give It Up - PetroChina's Decision to Give Up TMX Commitment Puts Focus on Demand, Logistics
PetroChina’s recent decision to offload its 20-year commitment to use the Trans Mountain Pipeline expansion (TMX) might seem like a bit of a head-scratcher on the surface, especially since Asian buyers have been expected to take advantage of the increased access to Western Canadian crude oil that TMX provides. But when you factor in the known challenges of utilizing the new pipeline and the reduced demand for crude oil in China, PetroChina’s decision to sell its commitment to Canadian Natural Resources Limited (CNRL) starts to make sense. In today’s RBN blog, we look at the challenges buyers face in using the TMX system despite its obvious perks.
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Come Sail Away - Exporting U.S. Crude Oil by Ship: Vessels, Chartering, Loading, Costs
U.S. exports of crude oil really took off in 2017, and the exporting pace has only accelerated this fall. In the 10 weeks since mid-September, crude exports have averaged nearly 1.6 million barrels/day, with the vast majority of that oil leaving by ship out of ports along the Gulf Coast. The lifting of the ban on most crude exports two years ago this month and the growth in exports since then have put a spotlight not only on coastal storage facilities, pipelines and marine docks, but also on the huge vessels used to transport crude to far-away destinations. Today, we discuss crude-export vessel configurations, tanker chartering practices, ship-loading challenges and transportation costs.
