Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Thicker Canadian crude to move on rail amid full pipelines

share with twitter share with LinkedIn share with facebook
12/03/2019 | 05:36pm EDT

WINNIPEG, Manitoba (Reuters) - Some of Canada's sludge-like heavy oil will move in an even thicker form on railways in an effort to avoid pipeline bottlenecks and reduce risks.

Gibson Energy Inc and US Development Group (USD) said on Tuesday they would build a diluent recovery unit at Hardisty, Alberta in a joint venture.

The unit will remove the ultralight oil that is used to dilute bitumen for movement in pipelines. That diluent can then be reused, while the thick, concentrated crude that remains - to be named DRUbit - can move on rail with less spill risk.

"We expect DRUs to be a critical part of solving the egress challenges Western Canadian producers are facing, both today and over the long-term,” said Steve Spaulding, Gibson’s chief executive. 

Congested pipelines in Western Canada have prompted Alberta to curtail oil production and shaken investor confidence. Other companies are developing similar ideas to move Canadian crude in safer form, including as pellets or pucks.

Canadian Pacific Railway Ltd and Kansas City Southern Railway Company will move the DRUbit to the U.S. Gulf Coast, where USD plans to build a terminal in Port Arthur, Texas.

U.S. oil producer ConocoPhillips has contracted to process 50,000 barrels per day of its Canadian crude through the DRUbit unit.

The cost of the project was not disclosed. The diluent recovery unit will take 18 to 24 months to build, subject to regulatory approvals. It could be in service by the second quarter of 2021.

(Reporting by Rod Nickel in Winnipeg, Manitoba; editing by Grant McCool)

Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. -5.87% 14.26 Delayed Quote.159.27%
BYD COMPANY LIMITED 1.13% 107.4 End-of-day quote.176.45%
CANADIAN PACIFIC RAILWAY LIMITED -0.37% 399.22 Delayed Quote.21.05%
CONOCOPHILLIPS -4.02% 32.92 Delayed Quote.-49.38%
GIBSON ENERGY INC. -4.18% 22.26 Delayed Quote.-16.28%
JUST GROUP PLC 0.04% 44.8 Delayed Quote.-43.32%
LONDON BRENT OIL 0.70% 41.76 Delayed Quote.-36.73%
WILL GROUP, INC. -6.31% 876 End-of-day quote.-30.03%
WTI 1.37% 39.902 Delayed Quote.-35.93%
share with twitter share with LinkedIn share with facebook
Latest news "Companies"
11:48aPENN NATIONAL GAMING : Announces Public Offering of Common Stock
BU
11:47aSensex, Nifty fall nearly 3%; fresh COVID-19 restriction fears weigh
RE
11:46aHEADHUNTER GROUP PLC : Announces Admission of its American Depositary Shares to Trade on the Moscow Exchange
AQ
11:46aCOMSCORE : Announces Renewal Agreement with Graham Media Group
PR
11:46aHANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL : Joins Partnership for Carbon Accounting Financials
BU
11:46aBANK OF AMERICA : Names Lionel Nowell Lead Independent Director Successor
BU
11:46aOWENS & MINOR : Updates Annual Earnings Guidance
BU
11:46aSACHET PACKAGING MARKET 2020-2024 : Forecasting Strategy to Undergo A Paradigm Shift from Crisis to New Normal during COVID-19 Pandemic | Technavio
BU
11:46aStantec selected to oversee water infrastructure improvements in Ulaanbaatar, Mongolia
GL
11:46aHeadHunter Group PLC Announces Admission of its American Depositary Shares to Trade on the Moscow Exchange
GL
Latest news "Companies"