RE:More on Shipping Crude from TMX BC terminals
With the focus of the pipeline expansion geared toward exports at the Westridge terminal, the cost to ship heavy crude oil from Edmonton to Westridge was estimated at US$7.99/bbl (C$10.49/bbl) to US$10.32/bbl (C$13.55/bbl), depending on the term of shipper commitment and volumes — two to four times higher than the original tolls for shipping on TMP. Moreover, these tolls were very much in the same range to ship heavy crude oil from Edmonton to the U.S. Gulf Coast for export, under similar commitment and volume terms, on rival Enbridge’s pipeline system, despite that alternative being nearly three times the distance.
- so the TMX pipeline will BENEFIT WCSB heavy oil producers but NOT AS MUCH as originally expected due to the HIGH TOLLS DEGRADATION on the blended bitumen NET MARGINS
- probable the GREATEST BENEFIT to the bitumen producers is from the COMPRESSED WTI/WCS price differentials due to the EXPANDED 590,000 bbls/d of heavy oil EGRESS to the Pacific west coast
- ANYTHING UNDER absolute value USD 10 per WCS/AWB barrel is a BONANZA for both the producers and the Alberta Treasury royalty fund
z173