UPDATE 1-Suncor to fill Montreal refinery with internal crude by early 2015

Thu Jul 31, 2014 11:22am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds quote, details on refining)

By Nia Williams

July 31 (Reuters) - Suncor Energy Inc anticipates being able to fill its 137,000-barrel-per-day refinery in Montreal, Quebec, from internal crude sources by early 2015, chief executive officer Steve Williams said in an earnings call on Thursday.

Canada's largest energy company has in the past sourced crude from the U.S. Gulf Coast and international Brent market as well as Atlantic and Western Canada for its Montreal facility.

But new rail unloading capacity of approximately 36,000 barrels per day at the refinery and the expected reversal on Enbridge Inc's 300,000 bpd Line 9 to Montreal by the end of the year means that Suncor should be able to rely on its own crude as a feedstock.

That will likely cut costs as Western Canadian crude tends to trade at a discount to the U.S. benchmark West Texas Intermediate. North American grades are also cheaper than international Brent crude.

"As we move into next year, you will see us increase the volume into Montreal refinery at internal continental prices," Williams said. "Early next year we anticipate being able to fill the Montreal refinery from a combination of different internal sources."

Suncor is reviewing the possibility of building a coker at the Montreal refinery to allow it to process more heavy crude.

Williams said Suncor was not going to fast-track the project and it would be developed in line with capital discipline practices, but he expected a request for funds to come to him sometime around the middle of next year.   Continued...