{"id":7063,"date":"2020-12-17T13:47:29","date_gmt":"2020-12-17T13:47:29","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2020\/12\/17\/how-a-pipeline-replacement-expansion-and-reversal-give-oil-producers-new-route-to-texas\/"},"modified":"2021-01-30T06:35:01","modified_gmt":"2021-01-30T06:35:01","slug":"how-a-pipeline-replacement-expansion-and-reversal-give-oil-producers-new-route-to-texas","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2020\/12\/17\/how-a-pipeline-replacement-expansion-and-reversal-give-oil-producers-new-route-to-texas\/","title":{"rendered":"How a pipeline replacement, expansion and reversal give oil producers new route to Texas"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<h2 class=\"visually-hidden\">Article content continued<\/h2>\n<p>Calgary-based TC Energy Corp. has been building the 830,000-bpd Keystone XL pipeline project, described as a \u201cbullet line\u201d between Alberta and Texas.<\/p>\n<p>KXL company spokesperson Terry Cunha said the project \u201chas been fully contracted short of the minimum capacity required by regulators to be set aside for walk-up shippers.\u201d<\/p>\n<blockquote>\n<p>It\u2019s not perfect. It would be perfect if it was 1.2 million bpd from Edmonton or Hardisty down to Louisiana<\/p>\n<p>Phil Skolnick, Eight Capital<\/p>\n<\/blockquote>\n<p>The Alberta government, which invested in the Keystone XL project and provided loan guarantees for construction costs next year, did not respond to a request for comment.<\/p>\n<p>Oil producers have committed to binding contracts on Keystone XL, which incoming U.S. president Joe Biden threatened to kill during the election campaign.<\/p>\n<p>Altogether, the Line 3 and Southern Access expansions will add roughly 370,000 bpd of pipeline capacity for Western Canadian producers shipping crude to the U.S.<\/p>\n<p>However, Enbridge\u2019s Yu said that once Line 3 and Southern Access are operational, the company plans to optimize its entire Mainline system \u2014 and believes it can further expand the system\u2019s capacity.<\/p>\n<section aria-labelledby=\"moreTopicLabel\" class=\"more-topic\">\n<h2 class=\"more-topic__title\" id=\"moreTopicLabel\">More On This Topic<\/h2>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><button aria-hidden=\"true\" class=\"more-topic__button-next\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>\u201cWe can probably optimize by another 200,000 to 300,000 barrels per day. That\u2019s about what types of crude we put on which pipelines and how we maximize the pumping capacity on all five (Mainline network) pipelines,\u201d he said. \u201cWe can do all of this without needing to invest any further capital or get more permits.\u201d<\/p>\n<p>Enbridge already operates the Flanagan South and Seaway Twin pipelines, which ship oil from the U.S. Midwest to the U.S. Gulf Coast.<\/p>\n<p>At Enbridge\u2019s most recent investor day, the company said it was looking to capture more of the market for shipping crude to the Gulf Coast.<\/p>\n<p>Asked whether the company\u2019s Line 3 and Southern Access projects were parts of that strategy, Yu said the route could provide more \u201cegress\u201d for Canadian oil producers.<\/p>\n<p>\u201cIt could be a partial mitigation to other pipelines if they don\u2019t go forward,\u201d he said.<\/p>\n<p><em>\u2022 Email: <a href=\"https:\/\/financialpost.com\/commodities\/energy\/mailto:gmorgan@nationalpost.com\" rel=\"nofollow noopener\" target=\"_blank\">gmorgan@nationalpost.com<\/a> | Twitter: <a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/geoffreymorgan\" rel=\"nofollow noopener\" target=\"_blank\">geoffreymorgan<\/a><\/em><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>\n<br \/><a href=\"https:\/\/financialpost.com\/commodities\/energy\/how-a-pipeline-replacement-expansion-and-reversal-give-oil-producers-new-route-to-texas\" rel=\"nofollow noopener\" target=\"_blank\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article content continued Calgary-based TC Energy Corp. has been building the 830,000-bpd Keystone XL pipeline project, described as a \u201cbullet line\u201d between Alberta and Texas. KXL company spokesperson Terry Cunha&#8230;<\/p>\n","protected":false},"author":2,"featured_media":7064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-7063","post","type-post","status-publish","format-standard","has-post-thumbnail","category-commodities"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=7063"}],"version-history":[{"count":1,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7063\/revisions"}],"predecessor-version":[{"id":7065,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7063\/revisions\/7065"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/7064"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=7063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=7063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=7063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}