Arbitrage for Canadian Crude to China Opens Ahead of TMX Start-Up: Platts

Arbitrage inflows of crude cargoes into Asia, especially for heavy crudes into China, could see an uptick as the Trans Mountain Pipeline expansion comes into operation, according to Platts.

• "Arbitrage will open frequently after TMX really gets ready. The choice is between the [US] West Coast and Asia, it depends on who's willing to pay at a higher price," a China-based independent refiner told Platts.
• The TMX expansion could be a game changer for China, cutting not only voyage times but freight costs., especially given ongoing disruption in the Red Sea.
• Sinopec and Unipec have already been heard to have bought cargoes on a DES basis for June delivery.
• The TMX expansion will bring the pipeline’s capacity to 890k b/d, with 540k b/d of heavy crude and 350k b/d of light and refined products.