The ultimate value of the Keystone XL Pipeline could be enhanced by Mexico’s oil production outlook, Platts Analytics said in a report soon after President Donald Trump approved construction of the project on March 24.
Assuming the TransCanada Corp. (NYSE: TRP) project obtains approvals from the Nebraska Public Service Commission and the U.S. Army Corps of Engineers, construction is unlikely to be complete until mid-2021, Platts said. Between now and then, Mexico’s production of heavy oil is expected to continue to decline, creating an opportunity for Western Canadian tar sands oil to flow through Keystone XL and fill that void at U.S. Gulf Coast refineries.
Seizing hold of that potentially lucrative opportunity is not a slam dunk. Platts noted that Keystone XL oil will have to compete with crudes imported from Mexico and Venezuela at Gulf Coast facilities configured to refine heavier grades of crude oil.
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Source: Daily Dose of ShaleDirectories.com News