(Bloomberg) -- Canadian Natural Resources Ltd. is taking over more space on the expanded Trans Mountain pipeline, bulking up its ability to ship crude to markets after buying assets from Chevron Corp. in a $6.5 billion deal.
Canada’s largest oil producer agreed to take over the space from a unit of PetroChina Co., according to a person with knowledge of the situation, who asked not to be named because they aren’t authorized to speak publicly. The 20-year contract will boost CNRL’s space on the pipeline by about 75% to roughly 164,000 barrels a day, according to the person and Bloomberg calculations. The news was previously reported by RBN Energy.
CNRL and PetroChina didn’t immediately return messages seeking comment.
CNRL has more than doubled its oil production over the past decade through a slew of acquisitions, including of assets operated by Shell Plc and Devon Energy Corp. The latest deal with Chevron boosts CNRL’s oil and gas output by roughly 9%, adding the equivalent of 122,500 barrels of oil production per day.
The Trans Mountain pipeline transports crude from Alberta’s oil sands to a port on Canada’s Pacific Coast. From there, the oil is shipped to refiners in California and Asia. The pipeline was recently expanded to almost 900,000 barrels a day, roughly three times its previous capacity.
--With assistance from Robert Tuttle and Devika Krishna Kumar.
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