Companies are announcing new rail projects in response to the rising demand
Investment
Canadian crude-by-rail shipments poised to surge, spurring investment – Calgary Herald
Canadian shipments of crude by rail are poised to surge next year, spurring investment in new export infrastructure.
Crude-by-rail capacity in Alberta is expected to grow by 100,000 barrels a day in December after the provincial government eased production limits for oil transported by train, the Energy Ministry said Wednesday. Western Canadian rail loadings had already climbed as high as 411,000 barrels a day in November despite a week-long Canadian National Railway Co. worker strike that disrupted shipments. Now they’re set to reach 550,000 barrels a day, Alberta Premier Jason Kenney said earlier this month.
Related
Calgary-based Gibson Energy Inc. became the latest company to announce new rail projects in response to the rising demand. The company on Wednesday said it plans to build a million barrels of new storage tanks at its Hardisty, Alberta, terminal, where it also plans to construct and operate a diluent recovery unit that will allow it to send more oilsands crude by train. SunCoke Energy Inc. and Summit Terminaling are developing a rail terminal to deliver Canadian heavy crude to Louisiana refineries.
Rail has became critical to oil exporters after pipelines filled to capacity two years ago, causing prices to collapse and prompting Alberta’s government to impose limits on some oil production at the start of the year. With no new pipelines scheduled to be built before late next year and projects such as the Trans Mountain pipeline expansion facing legal challenges, exports by train have picked up.
Alberta has eased production limits, causing heavy Canadian crude’s discount to the U.S. benchmark to widen to more than US$20 a barrel this month. At that level, crude-by-rail shipments become more economic, encouraging more cargoes, according to John Zahary, chief executive officer of Altex Energy Ltd, a crude-by-rail terminal operator.
“I think probably the next few months will get busier as we get into next year and these movements increase,” he said.
Economy
S&P/TSX up more than 200 points, U.S. markets also higher
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite little changed in late-morning trading, U.S. stock markets down
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 100 points, U.S. stocks also trade higher
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the technology and base meta sectors, while U.S. stock markets also climbed higher.
The S&P/TSX composite index was up 106.70 points at 24,179.21.
In New York, the Dow Jones industrial average was up 280.87 points at 42,361.24. The S&P 500 index was up 26.51 points at 5,777.64, while the Nasdaq composite was up 69.52 points at 18,252.44.
The Canadian dollar traded for 73.08 cents US compared with 73.22 cents US on Tuesday.
The November crude oil contract was down 67 cents at US$72.90 per barrel and the November natural gas contract was down eight cents at US$2.66 per mmBTU.
The December gold contract was down US$2.30 at US$2,633.10 an ounce and the December copper contract was down five cents at US$4.41 a pound.
This report by The Canadian Press was first published Oct. 9, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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