Alberta oil sands train headed for US in November
Alberta bitumen is going on a journey next month: Operating company Canexus will start transporting 50,000 barrels of crude per day on trains destined for the US.
The company is scheduled to start transporting from a new train terminal in Bruderheim, Alberta in Novemeber, the CEO of Canexus told Reuters reporters on Thursday.
The initial load of 50,000 barrels will double by the second half of 2014, the company said.
Canadian oil sands producer MEG Energy (TSE:MEG) told Reuters the terminal would allow it to ship all of its daily product – about 35,000 barrels.
Cenovus Energy (TSE:CVE) will also ship from Bruderheim next year.
Alberta has been yearning to get large volumes of its product to US markets. Railways and pipelines are the biggest options, though rail transportation is more costly.
By adding new routes, producers hope to ease a crude bottleneck which occurs in America's Midwest and results in significant discounts for the region.