TransCanada Corp filed with the U.S. energy regulator on Friday to increase spot rates on its Keystone crude pipeline from Manitoba and Alberta to key markets in the U.S. Midwest and Gulf Coast.
All increases will be effective April 1, according to filings with the U.S. Federal Energy Regulatory Commission.
Canada’s main oil-producing province of Alberta on Thursday raised the amount of crude that companies can produce in April to 3.66 million barrels per day, an increase of 100,000 bpd from the limit imposed in January.
TransCanada proposed increase in rates could dent spot shipments on the key conduit, backing up barrels as Alberta tries to clear a glut, one trader said.
The company plans to raise spot rates to $9.20/bbl to ship light crude and $10/bbl to ship heavy crude from Hardisty, Alberta to Port Arthur and Houston, Texas.
The company also filed to increase spot rates to $24.39 per cubic meter to ship light crude and $25.79 per cubic meter to ship heavy crude from the international boundary at or near Haskett, Manitoba to Wood River, Illinois.
TransCanada now aims to charge $24.72 per cubic meter to ship light crude and $26.35 per cubic meter to ship heavy crude from the international boundary at or near Haskett, Manitoba to Patoka, Illinois.
It will increase rates to $28.18 per cubic meter to ship light crude and $29.48 per cubic meter to ship heavy crude from the international boundary at or near Haskett, Manitoba to Cushing, Oklahoma.