About 20 ships loaded crude oil on Canada’s West Coast in the first full month of operations on the newly expanded Trans Mountain pipeline, slightly below the operator’s initial forecast of 22 ships.
Total crude exports from Vancouver were around 350,000 barrels per day, just shy of the expected 350,000-400,000 barrels per day range.
The loaded vessels, mostly Aframax ships carrying around 550,000 barrels each, were destined for the U.S. West Coast and Asia, with some cargoes loaded onto larger ships for delivery to India and China.
Reliance Industries in India was a major buyer, acquiring 2 million barrels of Canadian crude through a deal involving multiple ship-to-ship transfers.
The market was expecting about 17-18 loadings, according to Vortexa, a market analyst. Chinese demand has been below expectations, and Reliance’s purchase helped offset the lower loadings.
Logistical constraints in the busy, narrow shipping channel after leaving the Westridge dock in Vancouver were expected to impact loadings, as the Port of Vancouver has restrictions on transit times.
The expanded Trans Mountain pipeline is currently running at around 80% full, with some spot capacity used. The operator forecasts 96% utilization from next year, with the pipeline having a capacity to load 34 Aframax ships per month.