RE:RE:Propane terminal expansionIn the news release below It wasn't clear if the nameplate capacity of the plant is 80,000 BPD (double current volumes). However from a CIBC analyst's report this morning
" Disclosures on the conference call indicate RIPET has much more volume upside
than we expected, with capital for expansion theoretically only needed at 65k
Bbl/d, and then only for logistics (rail capacity) as opposed to more complicated
cold storage or in-water enhancements." It seems the facility is supply constrained to 65k BPD and the nameplate capacity is indeed 80k BPD. Increasing supply to 65kPD seems like low hanging fruit.
The potential increased volumes at RIPET was one of the reasons for the up-rating of the stock.
One other comment the analyst made is that the re-contracting of Blythe makes it easier to sell. It's a non core asset.
rustyblades wrote: 2nd paragraph in the news release "The facility has reached target capacity of 40,000 barrels per day after five months of operation and is expected to grow to its ultimate nameplate design of 80,000 bpd as more propane supply is procured, said CEO Randy Crawford on a conference call on Wednesday."
Doubling of capacity is coming sooner than later.