Company News

Cenovus Energy signs crude-by-rail transport deals with CN, CP

Sept 26 (Reuters) - Cenovus Energy Inc said on Wednesday it had signed three-year deals with Canada’s two major railways to transport roughly 100,000 barrels per day (bpd) of crude from Northern Alberta to the U.S. Gulf Coast.

The major Canadian energy producer will start shipments on Canadian National Railway from its Bruderheim Energy terminal in the fourth quarter of this year, and on Canadian Pacific Railway through USD Partner’s Hardisty, Alberta, terminal in the second quarter of 2019.

The company did not provide exact details on the contracts, but said it expects all-in costs to transport the oil from Alberta to the Gulf Coast to be in the mid-to-high teens in U.S. dollars.

Reuters exclusively reported earlier this month that Cenovus had signed a deal to move more crude on CN Rail. (Reporting by Julie Gordon in Vancouver Editing by Tom Brown)