Canada’s west coast crude exports up ten-fold on TMX
Crude exports from Canada's west coast rose sharply in June as shippers were eager to take advantage of enhanced access to Pacific Rim markets, according to Trans Mountain Corporation (TMC).
The 590,000 b/d Trans Mountain Expansion (TMX) pipeline nearly tripled the capacity of the original 300,000 b/d system connecting oil-rich Alberta to Burnaby, British Columbia, with new volumes reaching the Westridge Marine Terminal (WMT) midway through May.
Throughputs made a step change in June, the first full month of service, highlighting the pent-up demand among shippers who had waited years for the expansion to be built. Volumes on the Trans Mountain Mainline averaged 704,000 b/d in June, up from 412,000 b/d in May and 300,000 b/d in April, TMC said in its quarterly update.
Of those flows, more than half went to the WMT for export in June at 361,000 b/d, ten times the 36,000 b/d sent to the terminal in April. The WMT handled 76,000 b/d of volume in May.
Levels at the WMT have held steady in July and August above 350,000 b/d, according to more recent data from Kpler. Most of the volume has gone to China and the US west coast, but cargoes have also been aimed at new markets like Brunei this week.
On a quarterly basis, the Mainline handled 471,000 b/d from April-June, up from 349,000 b/d from a year earlier. The WMT handled 157,000 b/d in the second quarter, up from 39,000 b/d across the same period.
The Trans Mountain system also has a terminal at the Canada-US border near Sumas, Washington, that diverts crude to refineries in Washington state via the company's 111 kilometre (69 mile) Puget Sound Pipeline. Movements on Puget Sound rose to 246,000 b/d in June, up from 241,000 b/d in May and 199,000 b/d in April.
Across the quarter, Puget Sound moved 229,000 b/d, up from 233,000 b/d in the same quarter 2023.
Carrying costs for the highly-leveraged C$34bn ($25bn) TMX project weighed on the company's earnings despite an increase in toll-related revenues. Trans Mountain ended the second quarter with C$26.2bn of total debt, up from C$20.1bn a year earlier.
Trans Mountain posted a loss of C$48mn in the second quarter, down from a C$172mn profit during the same quarter of 2023.
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Opec+ members agree to delay output increase: Update
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Adds details from Opec statement London, 5 September (Argus) — Opec+ members have agreed to delay a plan to start increasing output by two months, following a virtual meeting today. Eight members of the group — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — are now scheduled to start unwinding 2.2mn b/d of "voluntary" crude production cuts from December over a 12-month period, the Opec Secretariat said in a statement. They previously planned to start unwinding in October. The return of these barrels is still not a foregone conclusion. The eight members retain the "flexibility to pause or reverse the adjustments as necessary", the secretariat said. If they go ahead with their updated plan, their collective output targets will rise by around 180,000 b/d in December. The delay to the output increase follows a steep fall in oil prices in recent days after worse-than-expected economic data in China and the US, and despite an ongoing oil blockade in Libya. The Opec statement did not specify the reason for the decision, nor did it make any note of market fundamentals. The secretariat did, however, highlight assurances by Iraq and Kazakhstan to compensate for producing above their output targets since the start of the year. Both countries have "committed to adjust compensation plans for any over produced volumes in August", Opec said. By Aydin Calik, Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Opec+ members agree to delay output increase
Opec+ members agree to delay output increase
London, 5 September (Argus) — Opec+ members have agreed to delay a plan to start increasing output by two months to December, a delegate source told Argus . Eight members of the group — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — had been preparing to start returning 2.2mn b/d of voluntary crude output cuts from October over a 12-month period, as agreed in June . The move follows a steep fall in oil prices in recent days after worse than expected economic data in China and the US, and despite an ongoing oil blockade in Libya. By Aydin Calik, Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Libyan crude prepares to load from eastern port
Libyan crude prepares to load from eastern port
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Opec+ members discuss delay to planned output increase
Opec+ members discuss delay to planned output increase
Dubai, 4 September (Argus) — Opec+ members are discussing the possibility of delaying a planned increase in production next month, according to sources. The potential move follows a steep fall in oil prices in recent days against a backdrop of an increasingly poor Chinese economic outlook and despite an ongoing oil blockade in Libya. Front-month Ice Brent crude futures closed at $73.75/bl on 3 September, down from over $81/bl at the start of last week and the lowest since around mid-December last year. Eight members of the group — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — had planned to start unwinding 2.2mn b/d of "voluntary" cuts over a 12-month period starting in October, as agreed at a meeting in June. The alliance made it clear at the time of the June meeting that the return of this output would be dependent on market conditions. But up until now, market observers and delegates had expected production to rise as planned. "[We are] now having a discussion on a possible delay of the monthly adjustment a bit," one delegate source told Argus . A second source confirmed that the talks are underway and a third said the group is at an "everything is possible point". Asked about a timeframe for any delay, one source said it could be until December when Opec+ has a scheduled in-person ministerial meeting in Vienna. By Bachar Halabi, Nader Itayim and Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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