Condensate HoneyPot,
Question regarding condensate. Nuvista produces a tonne of it and we know it is in high demand as a diluent for the heavy oil in pipelines. In fact, western Canada doesn't even come close to producing enough required and thus a lot has to be imported from US. Condensate sells at a premium
to WTI, I believe by a few bucks, whereas WCS sells at a significant discount.
So, when the TMX expansion comes online in late Q1, all the talk is how the WCS differential will narrow quite a bit and should not see spikes in the past due to egress. That is great, but I have heard nothing about the need for a heck of a lot more condensate. I would think there is a need for a lot more condensate and the price should find a higher premium. Where is all this condensate going to come from, or am i missing something?
Thoughts on this topic?