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Trans Mountain expansion may not give long-term price relief to Canada s booming oil output

Canadian oil producers expect the discount on their crude to shrink significantly when the Trans Mountain pipeline expansion starts this year, but the relief may be short-lived as surging supply.

Analysis-Trans Mountain expansion may not give long-term price relief to Canada s booming oil output

Canadian oil producers expect the discount on their crude to shrink significantly when the Trans Mountain pipeline expansion (TMX) starts this year, but the relief may be short-lived as surging supply looks set to exceed the country's pipeline capacity in just a few years. TMX will ship an extra 590,000 barrels per day (bpd) of crude, trebling existing capacity to Canada's Pacific Coast once the C$30.9 billion ($22.8 billion) expansion is finally complete. For much of the last decade, oil companies in the world's No. 4 producing country have been forced to sell their barrels at a deep discount to global prices due to lack of pipeline capacity to export crude.

Analysis-Trans Mountain expansion may not give long-term price relief to Canada s booming oil output

By Nia Williams (Reuters) - Canadian oil producers expect the discount on their crude to shrink significantly when the Trans Mountain pipeline expansion (TMX) starts this year, but the relief may be short-lived as surging supply looks set to exceed.

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