Reliance buys its first Canadian crude from Trans Mountain pipeline, sources say

Reliance joins a growing group of Asian refiners in buying Canadian crude to be exported from the new pipeline which is scheduled to start transporting oil in May. The Canadian government-owned pipeline expansion will nearly triple the flow of crude from Alberta to Canada’s Pacific Coast and open up access to Asia and the U.S. West Coast.

Also Read | India’s crude oil consumption up 4.6% in FY24, output rises marginally at 0.6%, imports steady: PPAC

Shell will perform ship-to-ship transfers to move about four 500,000-barrel cargoes of Access Western Blend (AWB) onto a Very Large Crude Carrier and ship the oil to the Sikka port, the sources said, where Reliance operates the world’s biggest refining complex.

Also Read | OPEC cuts and geopolitical tensions propel Brent crude up by over 13% in 2024; central banks face inflation challenge

One of the sources said the deal was done at $6 a barrel discount to September ICE Brent on delivered basis.

AWB is a type of heavy and highly acidic diluted bitumen produced by Canadian Natural Resources and MEG Energy.

Also Read | Reliance Power share price Today Live Updates : Reliance Power Stock Surges in Trading Today

Sellers of Canadian oil are exploring ways to increase exports to Asia where demand is growing and as Asian refiners typically pay higher premiums.

Chinese firms Sinochem, Unipec, the trading arm of Asia’s largest refiner Sinopec, and PetroChina have already bought several cargoes of AWB and Cold Lake crude from the pipeline to be delivered to China in June, trade sources said.

Reliance did not respond to a Reuters email seeking comments.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Published: 30 Apr 2024, 10:11 AM IST