CEO Bullish On Mexican Refinery & TMX Egress- sees structurallly lower WTI/WCS price differential as a result of less Mexican heavy oil exports to US Gulf Coast from Mexico due to new operational 340,000 bbls/d refinery in the country
- when the TMX becomes operational in 7 to 10 months (?), 600,000 bbls/d of WCS and AWB will be pulled away from the US Gulf Coast to TMX BC seaborne world markets
- this makes MEG's 100,000 bbls/d pipeline egress to US Gulf Coast much more valuable (in higher WCS prices in Texas, Louisiana plus Gulf of Mexico seaborne egress
- on top of that, they will get 20,000 bbls/d of pipeline capacity on the new TMX with Brent pricing instead of AWB pricing in the US Gulf Coast and Edmonton markets
z173