Chevron seeking a better deal
The National Energy Board (NEB) will begin public hearings into an application by Chevron Canada for priority access to capacity on Kinder Morgan Canada’s Trans Mountain Pipeline on Jan. 15, 2013 in Calgary.
Chevron filed for approval of Priority Destination Designation in June. If granted the company would be second in priority to ensure an adequate supply of crude oil from Alberta to its Burnaby refinery. Shippers that contract for fixed volumes on the pipeline get first priority.
Currently Chevron is in the third level of priority and must request the amount of volume they need to ship on the pipeline. If Kinder Morgan receives requests for more capacity than the pipeline can accommodate, the shipments are reduced equally for all shippers.
Since that apportioning has been going on since 2010, Chevron has had its requests reduced by as much as 70 per cent, according to spokesman Ray Lord.
As a result, shippers have had to try different methods to ensure each gets an adequate supply of oil. Chevron has shipped crude to its Burnaby refinery by tanker truck and, said Lord, they could also use rail.
If approved, the new priority designation would also apply to any future expansion of the pipeline.
Chevron’s North Burnaby refinery produces 30 per cent of transportation fuels used in B.C., 25 per cent of the province’s diesel and 40 per cent of jet fuel used at YVR.
Members of the public who wish to participate in the hearing can apply for intervenor status by Aug. 24 or file a letter of comment by Oct. 30. For more information, and to download the relevant forms go to the NEB website at www.neb-one.gc.ca
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