Trans Mountain Pushed to Alter Specifications to Help Oil Value [BNN Bloomberg (Canada)]
Chevron Corporation (CVX)
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Source: BNN Bloomberg
The drillers are asking Trans Mountain to lower the vapor pressure and acid levels of the crude it will allow to pass through the line, saying that the current limits are reducing the value of the oil that's shipped and restricting where it can be refined. Trans Mountain, which is owned by the Canadian government, didn't immediately respond to an email seeking comment. The complaints are marring the startup of the pipeline's long-delayed expansion, which almost triples the volume of crude that can be shipped from Alberta to the Pacific Coast. Oil producers already had been upset by the high tolls they're being charged to use the line — partly a result of construction setbacks that caused the project's price tag to balloon sixfold to C$34 billion — and are arguing the shortcomings should allow them to pay less. Chevron, a buyer of crude off the line, said in a letter filed with the Canada Energy Regulator Friday that the vapor pressure limit exceeds US Environmental Protection Age
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