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Heavy Canadian Oil Q1 Price Rises on TMPL Decision

OIL

Heavy Western Canadian Select’s discount to WTI in Alberta for Q1 has narrowed to $18.90/b from $19.61/b, according to Bloomberg sources.

  • The price rise follows regulatory approval for the expansion of Canada’s Trans Mountain Pipeline, linking Alberta to the Pacific Coast.
  • The project is now set for completion by early 2024.
  • The Canada Energy Regular approved the company’s proposal to replace a tunnelling project along a roughly 1.3km section of the line with a cheaper but more intrusive ditch.
  • The change was contested by the local Stk’emlúpsemc te Secwépemc Nation but allows the project to avoid an up to nine-month delay.

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