southern leg set to begin service on January 3
TransCanada Corp’s 700,000 barrel per day Cushing to Port Arthur, Texas, pipeline will begin service on Jan. 3, the company said in a tariff filed with the Federal Energy Regulatory Commission (FERC) on Monday.
The line is the southern leg of TransCanada’s controversial Keystone XL pipeline. The Calgary based company already operates a 590,000 bpd oil pipeline that carries Canadian oil from Haskett, Manitoba to Patoka, Illinois and Cushing.
Traders in North American crude oil markets have been awaiting the pipeline’s start, originally scheduled for the end of this year, because of its effect on oil inventories at the key delivery point at Cushing.
An 2.2 million barrel build at Cushing in early November was attributed to the start of linefill on the pipeline. Gulf Coast, where a large share of the country’s refining capacity is concentrated.
It will cost uncommitted shippers about $10.20 a barrel to ship light crude oil and $11.34 to ship heavy oil on the pipeline from Manitoba to Port Arthur, according to one of the tariff filings.
Committed shipment rates vary from approximately $5.13 a barrel for light crude to $5.81 a barrel for heavy oil, according to Reuters calculations based on the tariff rates.
Canadian oil producer Suncor Energy, is among the committed shippers and will send 50,000 bpd of oi mulberry outlet l to the Gulf Coast line when the pipeline co mulberry outlet mes into service. Suncor will ramp this up to 75,000 bpd of capacity by the end of next year, the company said in late October.
The Canadian pipeline company was forced to renegotiate the exp mulberry outlet iration dates on Keystone XL contracts at least three times, Chief Executive Officer Russ Girling said last week.