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Canada plans public hearings on Kinder Morgan pipeline expansion

  • Canada's National Energy Board says it will hold public hearings into Kinder Morgan Partners' (KMP) planned $5.4B expansion of the Trans Mountain pipeline that carries crude from the Alberta oil sands to the Pacific coast, first hearing evidence from aboriginal groups in August.
  • The regulator, which plans to issue a recommendation on the project's future no later than July 2015, says its review will focus on 12 issues, including impact on the environment, effects on marine shipping, aboriginal interests, and contingency planning for spills and accidents.
  • Energy producers such as Exxon (XOM) affiliate Imperial Oil (IMO), BP and Suncor (SU) are looking to the Trans Mountain expansion and other proposed pipelines - most notably Keystone XL (TRP) - to help ease the bottlenecks that have led to steep discounts for Alberta oil on global markets.
Comments (2)
  • User 509088
    , contributor
    Comments (1122) | Send Message
     
    I believe most Canadian oil and gas producers sell to shippers, not to global markets. the shippers are the pipes themselves and independent lessees of a certain percentage of mandated pipe space, and some rail consortiums, who sell the raw material to refiners.

     

    Canadian producers sell to the shipper at the price offered or don't sell.

     

    I don't believe the few Canadian nor American refiners have a price difference between raw materials based on country of origin, but they do on the quality of the raw material.

     

    indeed, how could a refiner know where a particular gobbet of heavy is from, it has no eagle, no beaver stamped on it.

     

    the issue is at the top of the pipe, which is local, not global, but it leads to a devaluation of Canadian oilers around the world, to be sure.

     

    I wonder why more pipes from the same companies using the same shippers is going to lead to a reduction or elimination of premiums. the maƮtre is still going to want his tip. more volume isn't going to lead to more competition, just more profit for the same few players.
    2 Apr 2014, 10:23 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1648) | Send Message
     
    More pipelines more competition lower prices.
    3 Apr 2014, 08:12 AM Reply Like
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