Cenovus Energy says by the end of next year the amount of oil it ships by rail will increase five fold.
It plans to ship 10,000 barrels per day by the end of this year, and by the end of next year, triple that to 30,000.
President and Chief Executive Brian Ferguson made the announcement at at investor presentation at its Calgary headquarters.
It upped its fleet of rail cars to 800 after signing leases for 500 insulated cars that can carry heavy bitumen.
Right now it’s only moving southern Alberta and Saskatchewan’s light and medium crude by rail but it expects bitumen to be by late next year.
Cenovus is still banking on the approval of the Keystone X.L. oilsands pipeline to the Gulf Coast and says the added rail won’t do if the project doesn’t get U.S. approval.
It says in 10 years oilsands production will grow to more than 400-thousand bpd.
It’s waiting for regulatory approvals on new phases at Christina Lake and Forster Creek oilsands sites that are joint ventures with ConocoPhillips.
Even though pipeline companies are waiting for approvals to either build or expand, Cenovus committed to TransCanada’s Northern Gateway and Kinder-Morgan’s TransMountain lines west as well as Enbridge’s Keystone X.L. to the south and a proposed line to the east.
June 19th, 2013
