Existing North American oil pipelines boost capacity as new projects drag on

Canada’s three major options for new oil pipeline capacity continue to face delays and court challenges, but existing North American pipelines are finding ways to move more barrels to refiners and export docks on the US Gulf Coast. Midstream companies’ second-quarter earnings cycle revealed a wave of compressor-based pipeline expansions across the US Rockies and Midwest to increase throughputs at low costs and without major regulatory and construction risks. TC Energy and Enbridge are also using chemicals called dragreduction agents to move more heavy crude in the same amount of pipeline space. That will allow TC Energy’s Keystone pipeline to move 50,000 b/d more by next year, and boost Enbridge’s Mainline capacity by 85,000 b/d. “It’s quite a different thing to try to permit a complete new pipeline,” said Susan Grissom, chief industry analyst for the American Fuel & Petrochemical Manufacturers. Plains All American Pipeline is holding an open season to gauge demand for a 70,000 b/d expansion of its Western Corridor system to move light oil from Canada, Montana and Wyoming. The barrels could eventually move to the Red Oak and Liberty pipelines bound for Texas export terminals in Corpus Christi and Houston. If Plains lines up commitments, it… continue reading

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Source: CTRM Center

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