Its startup could add as much as $2 per barrel to prices paid by U.S. Midwest oil refineries that sit along Canada's existing main oil-export route.
"They will be competing for barrels that no longer transit through their region," said a Calgary-based oil trader.
That has left Canadian oil producers vulnerable to deep price discounts or "blowouts" whenever pipelines become congested or rupture.
The start-up of TMX could add a "buck or two" to the cost of a barrel for Midwest refiners, he estimates.
So far this year, over 200,000 bpd of Canadian crude has been re-exported from the U.S. Gulf Coast, up from about 73,000 bpd in 2019, Kpler data showed.
Persons:
Rory Johnston, Matt Smith, Smith, Stephanie Kelly, Nia Williams, Laura Sanicola, Marguerita Choy
Organizations:
U.S ., U.S, BP, Citgo Petroleum, Exxon Mobil, Koch Industries, Flint Hills Resources, Canadian, Energy, Administration, TC, Keystone, refiners, Americas, Thomson
Locations:
CALGARY, Alberta, Coast, U.S, U.S . Midwest, Gulf Coast, Midwest, Flint, Calgary, Canada, Pacific, U.S . West Coast, Asia, Gulf, China, Kpler