U.S. West Coast refiners have significantly increased their imports of Canadian light crude oil since the Trans Mountain pipeline expansion (TMX) began operations in May. Initially, many industry observers expected the expanded pipeline to primarily transport heavy crude to destinations in Asia and California. However, recent data indicates a sharp rise in light crude shipments to the U.S.
This influx of Canadian light crude has begun to replace imports from Latin American suppliers, reinforcing the U.S.’s position as Canada’s largest oil export market. While TMX supports heavy crude exports to Asia, it also facilitates shipments of various crude types, including light grades, to the U.S. West Coast.
Data from trade analysis firm Kpler shows that imports of light synthetic and sweet crude to the U.S. West Coast reached nearly 100,000 barrels per day (bpd) in September, compared to just 7,000 bpd in June, marking the first full month of TMX operations.
According to Rory Johnston, founder of the Commodity Context newsletter, lower prices for synthetic crude—comprising most of the Canadian light grades purchased by U.S. refiners—likely contributed to the rise. Synthetic crude traded at a modest premium to West Texas Intermediate crude futures throughout the summer and into September, significantly lower than the $4 premium seen in April.
These tanker deliveries add to the approximately 240,000 bpd transported to Washington state via the Trans Mountain Puget Sound Pipeline, an extension of TMX capable of moving up to 890,000 bpd of crude from Alberta to Canada’s Pacific Coast.
A planned maintenance shutdown for a section of the Puget Sound Pipeline in mid-November may further increase waterborne imports of Canadian light crude to the U.S. West Coast, as the pipeline typically transports light grades, Johnston noted.
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