{"id":11328,"date":"2024-07-16T04:37:31","date_gmt":"2024-07-16T04:37:31","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=11328"},"modified":"2024-07-16T04:37:31","modified_gmt":"2024-07-16T04:37:31","slug":"asian-market-buys-first-oil-cargoes-from-canadas-trans-mountain-pipeline","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/11328\/","title":{"rendered":"Asian Market Buys First Oil Cargoes From Canada\u2019s Trans Mountain Pipeline"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0China, Japan and South Korea are set to receive cargoes of oil imports from Canada’s newly expanded Trans Mountain pipeline in September, becoming the first Asian countries to benefit from the facility since it became operational<\/a>\u00a0in May.<\/p>\n

The expanded TMX pipeline will triple the flow of crude from landlocked Alberta to Canada’s Pacific coast to 890,000 barrels per day (bpd). TMX provides Asian refiners an opportunity to diversify their imports while also giving Canadian producers more access to U.S. West Coast and Asian markets.<\/p>\n

South Korean refiner\u00a0GS Caltex<\/strong>\u00a0will split a 550,000-barrel Cold Lake crude cargo with Japan’s top refiner\u00a0ENEOS<\/strong>, with GS Caltex taking 300,000 barrels while ENEOS will get 250,000 barrels. South Korea’s top refiner\u00a0SK Energy<\/strong>, a unit of\u00a0SK Innovation<\/strong>, bought a 550,00-barrel cargo from\u00a0Unipec<\/strong>\u00a0while\u00a0Hengyi Petrochemical,<\/strong>\u00a0a refinery operator in Brunei, also purchased a similar volume of crude from\u00a0PetroChina Co\u00a0<\/strong>(OTCPK:PCCYF). All the cargoes were sold at discounts of between $5 and $6 a barrel to ICE Brent.<\/p>\n

Meanwhile, Chinese private refiner\u00a0Rongsheng Petrochemical<\/strong>\u00a0has purchased two Canadian Access Western Blend (AWB) crude cargoes from\u00a0ConocoPhillips\u00a0<\/strong>(NYSE:COP) and\u00a0Vitol<\/strong>\u00a0on top of another two AWB cargoes it bought via a tender. Cold Lake and AWB are heavy sour crude containing 3.5-4% sulfur and with API gravity of 21-22 degrees.<\/p>\n

TMX crude exports are expected to clock in at ~350,000-400,000 bpd, and will compete with heavy grades from Latin America and the Middle East. According to Muyu Xu, a senior crude oil analyst at analytics firm Kpler, Cold Lake crude is about $10 per barrel cheaper than Iraq’s Basra Heavy for deliveries to China.<\/p>\n

“Canada’s TMX crude attracts interest from Asian buyers who are keen to secure cheap supplies of heavy grades but do not have access to U.S.-sanctioned Venezuelan crude<\/em>,” XU told Reuters. “It will still take some time for refiners to experiment with and test TMX crude as the first few cargoes have just arrived,<\/em>” she added.<\/p>\n

Updated on