Suncor to ship 75,000 bpd on Gulf Coast line by end-'14

Reuters

CALGARY, Alberta, Oct 31 (Reuters) - Suncor Energy Inc will ship 75,000 barrels per day of heavy Canadian crudeto Texas refineries on TransCanada Corp's new GulfCoast pipeline by the end of next year, the company said in anearnings call on Thursday.

Suncor, Canada's largest oil and gas producer, expects tobegin filling the 700,000 bpd pipeline, also called KeystoneSouth by some market players, in the fourth quarter of 2013.

That will enable the company to ship 50,000 bpd of oil sandscrude to the Gulf Coast region, with capacity ramping up to75,000 bpd by the end of 2014.

"You will see that going to probably 75,000 bpd by the endof next year, down to the Gulf, which is certainly ample forcurrent and future production," said Steve Douglas, Suncor'svice president of investor relations.

TransCanada has said it expects testing on the pipeline,which will ship crude from the Cushing, Oklahoma delivery pointof the U.S. oil futures contract to Nederland, Texas, to becompleted by early November.

The market has been focused on the pipeline's startup as itwill provide another route to the Gulf Coast refining center forinventories of crude that swelled to record levels earlier thisyear at Cushing due to surging production from Canada, NorthDakota and Texas.

Some market participants said Suncor was thought to be oneof the biggest shippers on the Gulf Coast pipeline, andexpressed surprise that it would be moving only 75,000 bpd.

"I think people are curious as to why that number is so low.I'm not sure what people were expecting to see, but if they weresupposed to be the largest shippers, then that 50-75,00 bpdmight sound a bit low," said one market source, who asked toremain anonymous as he was unauthorised to speak to the media.

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