Canadian Natural Resources is taking over more space on the expanded Trans Mountain pipeline from a unit of PetroChina, boosting its ability to ship crude to markets after buying assets from Chevron, Bloomberg News reported on Monday, citing a person familiar with the matter.
Earlier this month, Chevron agreed to sell its assets in the Athabasca oil sands and Duvernay shale formation to Canadian Natural Resources for $6.5 billion.
The 20-year contract will boost Canadian Natural Resources’ space on the pipeline by about 75% to roughly 164,000 barrels per day (bpd), according to the report.
The recently expanded Trans Mountain pipeline has capacity to ship 890,000 bpd of crude from Alberta’s oil sands to the Port of Vancouver in British Columbia.
Earlier this month, in a letter filed with the Canada Energy Regulator, PetroChina Canada said it would no longer be a committed shipper on the Trans Mountain oil pipeline after assigning its contracts to another party.
Canadian Natural Resources and PetroChina did not immediately respond to Reuters’ requests for comment.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Alan Barona)