British Columbia: May startup of Trans Mountain pipeline expansion surprises analysts
Posted: Sat Apr 06, 2024 6:26 pm
British Columbia: May startup of Trans Mountain pipeline expansion surprises analysts
Read more here:
https://www.cbc.ca/news/canada/british- ... -1.7164904
Trans Mountain's announcement that its expanded oil pipeline would start commercial operations on May 1 has surprised analysts with an earlier-than-expected commencement on the long-delayed $34 billion project.
The federal government-owned company set the date late on Wednesday, having previously said startup would happen in the second quarter.
Canada is the fourth-largest oil producer but output has been capped by full pipelines. Expanding Trans Mountain will increase shipments from the British Columbia coast to Asia and the U.S. West Coast.
The May 1 target is ambitious considering Trans Mountain needs to complete line fill and receive regulatory approvals, said Dylan White, North American crude analyst for Wood Mackenzie, adding that late May or early June is more realistic.
"Pretty well everyone with whom I've spoken regarding startup was anticipating June 1," said Commodity Context analyst Rory Johnston on X.
Read more here:
https://www.cbc.ca/news/canada/british- ... -1.7164904
Trans Mountain's announcement that its expanded oil pipeline would start commercial operations on May 1 has surprised analysts with an earlier-than-expected commencement on the long-delayed $34 billion project.
The federal government-owned company set the date late on Wednesday, having previously said startup would happen in the second quarter.
Canada is the fourth-largest oil producer but output has been capped by full pipelines. Expanding Trans Mountain will increase shipments from the British Columbia coast to Asia and the U.S. West Coast.
The May 1 target is ambitious considering Trans Mountain needs to complete line fill and receive regulatory approvals, said Dylan White, North American crude analyst for Wood Mackenzie, adding that late May or early June is more realistic.
"Pretty well everyone with whom I've spoken regarding startup was anticipating June 1," said Commodity Context analyst Rory Johnston on X.