Why is RIPET’s Export of PROPANE at 48k BBLS/day for 1 yrSometimes, when we look for answers to questions the most obvious solution is often overlooked.
Look at 2 press releases 4 years apart.
a)Propane from British Columbia and Alberta will be transported to the facility using 50-60 rail cars a day through the existing CN rail network. --- May5 2017
b) The terminal will offload approximately 50-60 rail cars per day . Vopak rail Study March 2021.
Didn’t change much over the years . Did it?
Lets calculate how many barrels are available in 60 railcars /day.
*pressurized
*33,800 US gals (UTLX)
*42 gals/ barrel
Barrel/day = 60 (railcars)*33,800(gals/railcar) / 42(gals/barrel) = 48,283 barrels/day.
| Railcars /day | | Barrels/Day |
| 60 | | 48,285 |
| 70 | | 56,333 |
| 80 | | 64,380 |
| 90 | | 72,428 |
So why hasn’t Ripet increased its throughput? The most likely reason is that CNR and Altagas must have an agreement that states 50-60 railcars/day will be delivered to RIPET from storage in Alberta at a certain cost . Altagas must be asking for more delivery since propane prices are high and demand is good but CNR is refusing.
Hence RIPET is at 48,300 barrels /day throughput for the last year. You think there is a monopoly for cellphones……. This is far worse don’t you think?
GLTA
RFguy.
PS. I would think ALTAGAS is leasing the railcars directly from PROCOR. I would not think CNR is involved with any railcar leases.