Cenovus marine team working to extend our reach to new markets
An oil tanker docks at Kinder Morgan’s Westridge Marine Terminal in Burnaby, B.C.
March 2017 – It might seem a little unusual for a landlocked oil and natural gas company to have a marine team. It makes perfect sense to us, though, as we work to strengthen and broaden our customer base internationally, where we can typically receive a higher price for our oil and create more value for our shareholders and all Canadians.
At Cenovus, we now have a group in Houston that oversees the logistics of marine commercial agreements, which includes reviewing the regulatory and safety performance of the ship providers we hire to transport our oil. Having in-house marine experts with the ability to direct charter oil tankers has allowed us to take advantage of shipping opportunities.
Recently, we achieved a significant transportation milestone by managing our first waterborne cargo of crude oil from beginning to end. By doing so, the sale was more financially favourable to us than having the customer provide the ship as has occurred in the past.
“This is a notable accomplishment for Cenovus and a great example of how we’re expanding our transportation options to help us get the best possible price for our product,” says Claus Thornberg, Vice-President, Transportation. “We believe this will diminish the risks we face as a company by diversifying our customer base and reducing our dependence on the U.S.”
The Houston office books all of our marine activities including those off the coast of British Columbia, where we now move 11,500 barrels of oil per day through the Trans Mountain pipeline system’s Burnaby terminal. As new pipelines are built, we’re looking forward to the opportunities that should be created by having increased access to world markets through Canada’s east and west coasts.
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