Cenovus Signs Oil-by-Rail Deals Amid Canadian Pipeline Pinch
- Rail companies to transport 100,000 barrels a day to U.S. Gulf
- Local oil prices are near their weakest level in five years
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Cenovus Energy Inc. signed deals to transport about 100,000 barrels a day of heavy crude by rail to the U.S. Gulf Coast from Alberta as a pipeline bottleneck depresses Canadian oil prices.
The oil-sands producer agreed to three-year deals to ship oil to various destinations along the Gulf of Mexico, according to a statement Wednesday. Canadian National Railway Co. will move the crude from Cenovus’s Bruderheim Energy Terminal starting in the fourth quarter, while Canadian Pacific Railway Ltd. will ship out of USD Partner LP’s terminal in Hardisty beginning in the second quarter of next year.