04 September 2013 20:08 [Source: ICIS news]
TORONTO (ICIS)--Two planned west-to-east Canadian oil pipeline projects should benefit oil-based petrochemical producers in Quebec's ?xml:namespace>
The projects would also improve margins for Quebec's two refineries which would be able to source oil priced on West Texas Intermediate (WTI), rather than Brent, David Podruzny, vice president of business and economics at trade group Chemistry Industry Association of Canada (CIAC), told ICIS.
“Anytime you can get greater energy diversity and price competition you are going to see people say that this is a good move,” he said.
Energy infrastructure firm Enbridge has proposed to reverse the flow of an existing oil pipeline to go from the Sarnia petrochemicals production hub in southern Ontario eastward to Montreal. Meanwhile, TransCanada plans to build a west-to-east oil pipeline that will partially be based on converting existing natural gas pipeline capacity to oil.
Podruzny said that overall,
"We have a very competitive gas-based petrochemicals industry in western Canada and in Sarnia which is competing against places like China, Japan and Europe, where producers are oil-based," he added.
Podruzny also said that
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections