As we see takeaway capacity improve this will bring even more FCF to Canadian Oil & Gas companies.
As noted looking at Bloomberg today WCS today $66+
Great news!
Reference:
Capline Pipeline reversal fully online with extra Canadian crude capacity
The reversed Capline Pipeline is fully online and has enough excess capacity to roughly double its current Canadian oil sands crude volumes.
The Capline reversal project to send crude from Patoka, Illinois to St. James, Louisiana started interim service Dec. 18 and entered full service Jan. 1 with initial volumes of about 100,000 b/d. But the pipeline currently has capacity of about 200,000 b/d and excess capacity is available for both contracted and spot shipments, said Marathon Petroleum spokesman Jamal Kheiry.
"Currently, there is available space on the 200,000 b/d pipeline. When additional capacity is required based on market demand, existing pump stations can be reactivated," Kheiry said in a statement.
Capline is a 632-mile, 40-inch pipeline system that historically moved crude from the Louisiana Gulf Coast to Midwestern refiners. But, as demand has picked up for crude oil from Canada and the Bakken shale -- both for Gulf Coast refiners and export markets -- the decision was made to reverse the line and carry crude to the Louisiana Gulf Coast where it has easy access to refineries and LOOP.
Capline, which is owned by Marathon and Plains All American Pipeline, connects to Canada via Enbridge's Mainline pipeline system Enbridge's 300,000 b/d Southern Access Extension pipeline, which Enbridge eventually plans to increase to roughly 400,000 b/d through optimization efforts. TC Energy's Keystone Pipeline also stretches to Patoka.
