From the article:
Capline was the largest south-to-north flowing pipeline in the United States with a capacity of 1.2 million barrels of oil per day, but owner Marathon Petroleum has been working to reverse the flow since 2017, which would allow both heavy and light oil to flow from a storage hub in the U.S. Midwest to a major refining centre on the Gulf Coast. The company website notes that the reversal will be completed this year.
“They’re doing line fill right now,” BMO Capital Markets analyst Randy Ollenberger said of the Capline, adding that he expected the pipeline to shrink Western Canada Select discounts relative to West Texas Intermediate oil prices to US$10 per barrel. A barrel of WCS traded up 1.67 per cent Thursday to US$67.08, which implies a US$15.50 per barrel discount relative to the WTI price of US$82.58 per barrel.
To use the Capline, Canadian oil producers will need to ship their crude on Enbridge Inc.’s Mainline pipeline system to the U.S. Midwest, and then switch to the Enbridge’s Southern Access pipeline connected to the Patoka oil storage hub, which provides direct access to the Capline and a straight shot to the refineries of the U.S. Gulf Coast.
More good news for Alberta oil producers
financialpost.com
Capline was the largest south-to-north flowing pipeline in the United States with a capacity of 1.2 million barrels of oil per day, but owner Marathon Petroleum has been working to reverse the flow since 2017, which would allow both heavy and light oil to flow from a storage hub in the U.S. Midwest to a major refining centre on the Gulf Coast. The company website notes that the reversal will be completed this year.
“They’re doing line fill right now,” BMO Capital Markets analyst Randy Ollenberger said of the Capline, adding that he expected the pipeline to shrink Western Canada Select discounts relative to West Texas Intermediate oil prices to US$10 per barrel. A barrel of WCS traded up 1.67 per cent Thursday to US$67.08, which implies a US$15.50 per barrel discount relative to the WTI price of US$82.58 per barrel.
To use the Capline, Canadian oil producers will need to ship their crude on Enbridge Inc.’s Mainline pipeline system to the U.S. Midwest, and then switch to the Enbridge’s Southern Access pipeline connected to the Patoka oil storage hub, which provides direct access to the Capline and a straight shot to the refineries of the U.S. Gulf Coast.
More good news for Alberta oil producers
Canadian oil producers eye new pipeline route to Gulf Coast as Marathon reverses Capline conduit
Canadian producers don’t have to be physically shipping on the Capline to benefit from the reversal
