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Thursday, Sep 5
U.S. refiners move on with plans, no longer expecting Keystone completion
- U.S. refiners increasingly doubt the Keystone XL (TRP) pipeline expansion will ever be built, and they no longer care, as railroads are carrying soaring amounts of crude from Canada to refineries along the U.S. Gulf Coast.
- Further, Enbridge (ENB) is expanding existing pipes to carry Canadian crude south, and it doesn't need federal permission because it's using existing pipeline rights of way; also, there's so much U.S. oil from its own wells that refiners don't need lots more heavy crude from the north to keep busy.
- Refiners are moving ahead with other plans: Valero Energy (VLO) had signed to receive oil from Keystone when the project was first announced, but it no longer considers the pipeline critical to its business - "If we just sat around and waited for Washington, we'd never get anything done."