Canadian Natural Resources is increasing its space on the expanded Trans Mountain pipeline by acquiring capacity from a unit of PetroChina, reported Bloomberg, citing an undisclosed source.

This move will enhance its ability to transport crude to markets after purchasing assets from Chevron.

Earlier this month, Chevron reached an agreement to sell its assets in the Athabasca oil sands and the Duvernay shale formation to Canadian Natural Resources for $6.5bn (C8.99bn).

The 20-year contract will boost Canadian Natural Resources' allocation on the pipeline surge by approximately 75% to an estimated 164,000bpd.

The expanded Trans Mountain pipeline is capable of shipping 890,000bpd of crude and runs from Alberta's oil sands to the Port of Vancouver in British Columbia.

PetroChina Canada, a subsidiary of PetroChina, recently indicated its intention to cease being a committed shipper on the Trans Mountain oil pipeline.

The company filed a letter with the Canada Energy Regulator, stating it had assigned its contracts to another party.

The Canada Energy Regulator granted the final necessary permits for the Trans Mountain oil pipeline expansion in May 2024.

This approval paved the way for the pipeline's capacity to be increased from 300,000bpd to 890,000bpd, significantly enhancing the transportation infrastructure for Canada's oil sands production.

In July 2024, Trans Mountain Corporation, the operator of a major Canadian oil pipeline, planned to enter the bond market to refinance a portion of its C$25.3bn debt.

This refinancing effort aligns with the Canadian Government's preparations to sell the pipeline company. Trans Mountain, with no prior debt issuance and no credit rating, has credit agreements amounting to C$19bn that are set to mature in 2026.

"Canadian Natural Resources secures additional space on Trans Mountain pipeline" was originally created and published by Offshore Technology, a GlobalData owned brand.

 

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