Crude Summit: TC Energy pivots after KXL cancellation

  • : Crude oil
  • 22/01/25

TC Energy is pivoting to find new ways to utilize its North American crude pipeline network after shelving plans to build the cross-border Keystone XL pipeline, including new ways to utilize its MarketLink system from Cushing, Oklahoma, to the US Gulf coast.

Calgary-based TC Energy, previously known as TransCanada, cancelled Keystone XL in 2021 after years of regulatory and legal delays. The company had previously suspended construction on the $8bn line after President Joe Biden rescinded a cross-border permit within hours of taking office in January 2021.

"It was very disappointing to say the least," said Bevin Wirzba, president of liquids pipelines at TC Energy, speaking at the Argus Americas Crude Summit in Houston, Texas, today. "We still believe in the merits for modern world-class North American infrastructure like Keystone XL."

Though it is still possible to boost pipeline capacity with strategic increases to existing assets, "The days of developers proposing multi-jurisdictional mega-projects may be behind us," Wirzba said.

The proposed 830,000 b/d Keystone XL pipeline would have moved crude from Hardisty, Alberta, to Steele City, Nebraska, where it would have connected with other pipelines to Cushing, Oklahoma, and the southeast Texas coast.

TC Energy had been reserving long-term capacity on its 800,000 b/d MarketLink crude pipeline from Cushing to Houston and Port Arthur in Texas in anticipation of offering combined service on Keystone XL from western Canada to the US Gulf coast.

In light of the Keystone XL cancellation, "We have pivoted our strategy and are open for new business opportunities" on MarketLink, Wirzba said.

TC Energy is also boosting pipeline connectivity and storage in the Houston region, where it sees a rising potential for rising heavy Canadian crude demand at area refineries and export facilities, he said.

TC Energy has seen record throughputs in recent months on its existing Keystone pipeline system that runs from Hardisty to Nebraska, where it splits to carry crude to Wood River and Patoka, Illinois.

The recent reversal of the Capline crude pipeline to St James, Louisiana, from Patoka could boost trading liquidity at the Patoka hub in coming months, Wirzba said.


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24/06/18

Tropical storm warning for South Texas coast: Update

Tropical storm warning for South Texas coast: Update

Updates with closure of Galveston, Texas City ports. New York, 18 June (Argus) — A tropical storm warning has been issued for parts of south Texas and northeastern Mexico, bringing with it the risk of heavy rainfall and flooding. The warning is in effect for the Texas coast from Port O'Connor south to the mouth of the Rio Grande, as well as the northeastern coast of Mexico, according to the National Hurricane Center. "The disturbance is very large with rainfall, coastal flooding, and wind impacts likely to occur far from the center along the coasts of Texas and northeastern Mexico," the center said overnight. Maximum sustained winds this morning remained near 40 mph and the disturbance is forecast to become a tropical storm by Wednesday. The system has been classified as a potential tropical cyclone by the center since it has not yet become better organized, but is expected to become the first named storm system of the year by early Wednesday. The port of Corpus Christi in South Texas and the Houston Ship Channel remained open as of Tuesday morning, but the nearby ports of Galveston and Texas City closed to inbound and outbound shipping traffic at 10pm ET Monday due to heavy weather, the US Coast Guard said. The system was expected to disrupt ship-to-ship transfer operations off the Texas coast as of Monday evening because of heavy seas. In the Gulf of Mexico, the transfer typically is from an Aframax or Suezmax onto a very large crude carrier (VLCC) at designated lightering zones near Corpus Christi, Galveston and Beaumont-Port Arthur. Prolonged lightering delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees. The storm is expected to turn towards the west-northwest and west tonight and Wednesday, with the system forecast to approach the western Gulf coast late Wednesday, the NHC said. Rainfall totals of 5 to 10 inches are seen across northeast Mexico into South Texas, with maximum totals of 15 inches possible. Flash and urban flooding are likely to follow with river flooding. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tropical storm warning for South Texas coast


24/06/18
24/06/18

Tropical storm warning for South Texas coast

New York, 18 June (Argus) — A tropical storm warning has been issued for parts of South Texas and northeastern Mexico, bringing with it the risk of heavy rainfall and flooding. The warning is in effect for the Texas coast from Port O'Connor south to the mouth of the Rio Grande, as well as the northeastern coast of Mexico, according to the National Hurricane Center. "The disturbance is very large with rainfall, coastal flooding, and wind impacts likely to occur far from the center along the coasts of Texas and northeastern Mexico," the center said overnight. Maximum sustained winds this morning remained near 40 mph and the disturbance is forecast to become a tropical storm by Wednesday. The system has been classified as a potential tropical cyclone by the center since it has not yet become better organized, but is expected to become the first named storm system of the year by early Wednesday. The system was expected to disrupt ship-to-ship transfer operations off the Texas coast as of Monday evening because of heavy seas. In the Gulf of Mexico, the transfer typically is from an Aframax or Suezmax onto a very large crude carrier (VLCC) at designated lightering zones near Corpus Christi, Galveston and Beaumont-Port Arthur. Prolonged lightering delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees. The storm is expected to turn towards the west-northwest and west tonight and Wednesday, with the system forecast to approach the western Gulf coast late Wednesday, the NHC said. Rainfall totals of 5 to 10 inches are seen across northeast Mexico into South Texas, with maximum totals of 15 inches possible. Flash and urban flooding are likely to follow with river flooding. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iran rebukes G7 over nuclear warning: Update


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Iran rebukes G7 after warning over nuclear escalation


24/06/17
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