Chinese Company Buys First Crude Cargo From Canadian Pipeline

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A Chinese company has purchased one of the first crude cargoes shipped via the expanded Tans Mountain pipeline, the crude will be loaded in May-June.

A Chinese company has bought a cargo of Canadian crude, to be shipped via the expanded Trans Mountain pipeline in May-June, Bloomberg has reported, citing trading sources who wished to remain unnamed. The buyer is Sinochem and the cargo is of 550,000 barrels of heavy crude produced by Suncor, the report added. The grade has similar properties to Iraq’s Basrah crude, the sources told Bloomberg.

The reason producers are already ramping up production in anticipation of the additional offtake capacity and it will only take a couple of years or so for the additional production to exceed the additional capacity. There are no other oil pipeline projects in the works in Canada and even the progress of the Trans Mountain expansion is something of a miracle after a series of delays and legal challenges from activists.

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