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Canada’s Greatest Oil Refinery To Run On U.S

Imported shale gas from the United States will gasoline Canada’s largest oil refinery underneath a plan awaiting approval by the Nationwide Power Board (NEB).

Maritimes & Northeast Pipeline (M&NP) seeks to carry 65 MMcf/d from its border crossing between Maine and New Brunswick to Irving Oil’s 313,000 b/d plant in Saint John.

The proposal is a “load retention service” featuring a toll low cost, to clinch a thirteen-year contract with Irving Oil. The bargain counters a potential rival import hyperlink that native distributor Emera Brunswick Pipeline Co. offered to construct for the refinery, M&NP has informed the NEB.

Whereas an approval procedure for M&NP’s software has but to be established, board monitoring of Canada’s japanese seaboard pure gas scene exhibits that the proposed deal is a part of a trend towards low-cost imports from the United States.

Expensive production offshore of Nova Scotia, developed in the 1990s and early 2000s, has depleted and never new energy generation technologies been changed by new drilling for the reason that onset of the Marcellus-Utica shale gale made the eastern U.S. a much bigger producer than all of Canada.

While originally meant as primarily an export conduit when service began in 1999, MNP was installed with functionality to new energy generation technologies reverse the course of gasoline deliveries. “Flow has changed, with declining fuel flows to Canadian markets from offshore fields being supplemented by gas flowing south-to-north from the border,” mentioned the M&NP application.

An NEB “market snapshot” summary mentioned, “Natural gasoline production from the Sable Island and Deep Panuke offshore platforms remained beneath historical ranges in 2016, averaging 185 MMcf/d. By comparison, offshore production averaged 210 MMcf/d in 2015 and 350 MMcf/d in 2014.

“Net exports on M&NP reached an all-time low in 2016 and on an annual foundation averaged almost zero. This compares to average web exports of 20 MMcf/d in 2015 and 160 MMcf/d in 2014.”

Production by the Sable Offshore Energy Mission has dwindled by practically eighty% from a 2001 peak of about 600 MMcf/d to a 120 MMcf/d vary in the 2016-2017 heating season, based on data kept by the Canada-Nova Scotia Offshore Petroleum Board. The Deep Panuke platform has solely operated as a peaking service during japanese chilly snaps since 2015.

In the Irving Oil case, imported U.S. shale gas will help a lively commerce in refined merchandise. Greater than half of the mammoth Saint John plant’s output is exported, mainly to the northeastern United States. The refinery’s crude oil supplies arrive through tankers and railways from a variety of overseas, U.S.