CA - The Trans Mountain Pipeline Expansion Will Benefit Cenovus
Summary
- Later this year, likely in Q4, the long-awaited Trans Mountain pipeline expansion project will come online. The stocks of big oil sands producers - like Cenovus - will benefit.
- The pipeline will add 590,000 bpd of long-overdo and badly needed oil sands pipeline exit capacity.
- As the pipeline fills, expect the typically big discount of WCS to WTI to significantly narrow. That will likely boost the stock prices of big oil sands producers.
- However, the oil sands producers have plenty of additional production capacity potential and the benefit is likely be relatively temporary.
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The Trans Mountain Pipeline Expansion Will Benefit Cenovus