If TransCanada manages to get its oil sands pipeline to the east coast done, India may end up being one of the biggest beneficiaries.
The Financial Express in New Delhi says Indian oil companies like Indian Oil Corporation and Reliance Industries are lining up to buy bitumen.
That’s because even after getting it carried by rail to the east coast now, and shipped to India, a barrel of Canadian oil is still about 14 percent cheaper than Indian oil.
Last fiscal year saw India increase its oil imports by almost 10 percent; it imports almost 170 billion US dollars worth per year now.
Reliance owns the largest refinery in the world and it’s attracted to bitumen because there are lots of different products it can be refined into.
Indian Oil Corporation is building a new refinery, and has signed a letter of interest with a company that has a 100 thousand barrel per day stake in the Energy East pipeline.
