By Nia Williams
The Calgary-based energy company received approval from regulators on Wednesday to finally start operating the 300,000 bpd pipeline carrying mainly light crude from Sarnia, Ontario, to Montreal, Quebec, nearly a year after it was first expected in service.
For Quebec’s two refineries, Suncor Energy’s 137,000 bpd Montreal plant and Valero Energy’s 265,000 bpd Jean Gaulin facility, the approval is a welcome boon.
Both will be able to switch to a diet of 100 percent West Texas Intermediate-linked crude such as Canadian light synthetic or North Dakota Bakken, displacing pricier Brent-linked feedstock from regions including West Africa and the North Sea.
At present the refineries receive crude by rail, seaborne imports into Quebec, and volumes from the Portland-Montreal pipeline, which transports imported crude north....