For Canada's Oil-Rail Terminal Firms, Muted Glee Over Keystone
Under Pressure
With Western Canadian production expected to more than double to 6.6 million bpd by 2030, producers are desperately seeking alternatives to congested export pipelines.
An estimated 1.1 million bpd of rail-terminal capacity will be available in Western Canada by year's end, but much of that will depend on already-delayed terminal projects sticking to construction schedules.
With much of the industry struggling to execute existing projects, industry sources see little opportunity for midstream companies to take full advantage of the Keystone delay.
Canexus Corp, a chemical manufacturing and transloading company, originally planned to be shipping 50,000 bpd of crude by November but in March was only loading 12 to 15 unit trains per month, roughly 24,000 bpd. Its Bruderheim, Alberta, facility is also scheduled to be shut down for up to 90 days from June to finish construction work.
Canexus did not respond to requests for comment.
Its shares are down nearly 25 percent since the start of 2014 following huge cost overruns on the Bruderheim terminal and the departure of chief executive officer Gary Kubera. But they have risen 6 percent since Friday's news.
Privately owned TORQ Transloading Inc's 168,000 bpd Kerrobert, Saskatchewan, terminal will be more than a year overdue, and Gibson's 120,000 bpd Hardisty, Alberta, unit train terminal has missed its first quarter 2014 start date by several months.
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