EARLY THIS YEAR, EMBATTLED PIPELINE OPERATOR TransCanada started a side business, possibly to take its mind off the frustration of stalled Canadian pipeline applications. The country’s second-largest pipeline operator has begun trading oil through a new Calgary-based liquids trading group, a spokesman told Reuters in January. It’s a move that TransCanada has reportedly been eyeing for more than a year.
Details of the company’s trading practices have not been made public, but the report indicates that CEO Russ Girling plans to trade all grades of Canadian and U.S. crude handled along its network, which stretches from northern Alberta to the U.S. Gulf Coast.
Chief competitor Enbridge also operates a crude oil, natural gas liquids and natural gas trading subsidiary through the Calgary-based Tidal Energy Marketing. The group markets an estimated 120,000 barrels per day of Western Canadian crude, as well as 15,000 barrels per day of natural gas liquids and 500 million cubic feet of natural gas.
TransCanada continues its push for approval on the 1.1-million-barrel-per-day Energy East pipeline, which would carry Western Canadian crude to the Atlantic coast.