August 8, 2016- Housley Carr, RBN Power- In the past century and a half, Sarnia, ON has evolved into one in all Canada’s leading refinery and petrochemical centers, and a serious consumer of Alberta and Bakken crude and Alberta and — extra not too long ago — Marcellus/Utica pure gas liquids. Getting that oil and people NGLs to southwestern Ontario is the task of a small group of pipelines and a few rail services; other pipelines out of Sarnia assist to maneuver refined petroleum merchandise to close by demand Glycerin Refining Equipment centers. At the moment, we continue our complete evaluate of refinery and petchem-associated infrastructure in and around Ontario’s Chemical Valley.
As we stated partially 1 of our collection, Sarnia was present at the creation of the North American oil business — an 1858 nicely in close by Oil Springs, ON is said to have been the primary on the continent, beating Col. Edwin Drake’s (in fact) extra well-known properly in Titusville, PA by a yr. Over time, oil-manufacturing, refining and petchem infrastructure was developed in southwestern Ontario (as have been pipelines and railroads), and Sarnia’s role as a serious refining/petchem participant continues to at the present time, many years after most oil production in southwestern Ontario dried up. Since what People hear about Canada sometimes seems to go in one ear and out the other, we’ll remind you that Sarnia is alongside the St. Clair River close to the southern tip of Lake Huron. There are presently three refineries in Sarnia’s Chemical Valley with a combined capacity of about 277 Mb/d: Imperial (121 Mb/d; pink area along upper a part of the St. Clair River in Determine 1), Suncor (85 Mb/d; gentle purple space simply downstream from Imperial), and Shell (71 Mb/d; red area downstream from Suncor).
The crude refined in Sarnia comes primarily from two sources (Alberta and the Bakken) and is delivered to Sarnia by two Enbridge pipelines: the 540-Mb/d Line 5 (medium blue line in higher left of Determine 1), and the 500-Mb/d Line 78. Line 5 is a 645-mile, 30-inch-diameter pipeline that runs from Superior, WI (close to the western tip of Lake Superior) throughout Michigan’s higher and lower peninsulas (its move splitting into two 20-inch-diameter pipelines underneath the Straits of Mackinac) and then across the St. Clair River into Sarnia. Line 5 transports gentle oil and NGLs from Alberta in batches (see Refined, Piped, Delivered — They’re Yours for an explanation of how batching works). Line 78 (pink line in lower left of Determine 1), in the meantime, strikes light, medium and heavy oil (from the Bakken and Alberta) in a 30-to-36-inch-diameter pipe (formerly often called Line 6B) 273 miles from Griffith, IN to a terminal and tankage in Stockbridge, MI, and from there to Sarnia. The pipeline tariffs for transferring oil from Alberta and the Bakken to Sarnia are typically within the $4-to-$6/bbl range, and it’s important to notice that not all of the crude that flows to Sarnia stops there. There are two other Enbridge pipelines — the 180 Mb/d Line 7 (brown line in upper proper of Determine 1) moves mild, medium and heavy oil from the tip of Line 5 in Sarnia to Enbridge’s Westover, ON terminal. From there it may possibly circulation on Line 10 to the Kiantone Pipeline in West Seneca, NY or on Line 11 to Nanticoke, ON. The opposite Enbridge pipeline out of Sarnia is Line 9 (orange line in higher proper), which may move up to 400 Mb/d via Westover to Montreal, QB. (Line 9 until lately flowed east to west, but its path was reversed to allow extra Alberta and Bakken crude to flow eastward — see Come On the Sloop 9B.)
Every of the three Sarnia refineries is totally different from the others. Imperial, for instance, is a relatively complex refinery (extra bells and whistles) with a crude slate that’s about sixty five% Western Canadian Choose (WCS) and 35% Western Canadian Heavy Bitter. The refinery had processed some Eastern Canadian Candy and imported sweet — in this case meaning oil shipped to jap Canadian docks — as recently as 2014, but stopped that when the flow on Line 9 was reversed to west-to-east. Imperial’s liquid product yield in 2015 was about 31% diesel, 24% gasoline, 13% kerosene/jet gas and 13% fluid catalytic cracking (FCC) gasoline intermediate; the remainder is a mix of olefin intermediates (6%), naphtha intermediates (5%), liquefied petroleum gasoline (LPG, largely propane with some butanes; 4%), and aromatics (2%). (The Imperial refinery suffers from low light oil product yield because of the lack of gasoline hydrotreating and alkylation capacity.) In the meantime, about seventy five% of the Suncor refinery’s feedstock comes from the Alberta oil sands, and the Shell refinery’s crude slate is all WCS. Shell is a low-complexity refinery whose highest worth products made up eighty four% of its whole liquid quantity yield in 2015 — forty% gasoline, 36% diesel, four% aromatics and four% kerosene/jet gas. One other 10% of the yield is heavy gasoline oil, and 6% is LPG. One thing all three of the Sarnia refineries have in frequent is that their utilization charges are excessive — higher than the averages for all Canadian refineries and for U.S. refineries in Petroleum Administration for Protection District (PADD 2; the Midwest and higher Great Plains). Among the refined petroleum products that come out of the three refineries serve the local area, and much of the remainder is piped to Toronto (and smaller cities and towns along the way) on considered one of three product pipelines with a total capability of 213 Mb/d. These embody two Sun-Canadian pipelines (one eight inches in diameter and the other 12 inches; green line in Determine 1) whose mixed capability is a hundred and twenty Mb/d; these pipelines are owned by a joint enterprise of Suncor and Shell. The third pipeline is Enbridge’s 93-Mb/d Line 8, which is underneath long-term lease to Imperial’s Sarnia refinery. The pipeline tariff for Line eight (yellow line in Figure 1) is estimated at 34 cents/bbl (based mostly on Imperial’s monthly lease funds to Enbridge); a tariff for the Solar-Canadian pipelines shouldn’t be obtainable as a result of proprietary nature of the traces. (There can also be an intermediates pipeline that connects the Imperial refineries in Sarnia and Nanticoke, the latter of which processes heavy FCC gasoline and butylene produced at Sarnia.) We must always word that the three Sarnia refineries profit from refined-product price premiums relative to the Chicago market.
To finish up our look on the pipelines serving Sarnia’s refining sector, let’s take a fast look at a handful of crude pipeline initiatives that might give Imperial, Suncor and Shell even more access to Alberta and Bakken crudes. These embody TransCanada’s Power East challenge, which would convert parts of the company’s pure gasoline-transferring Canadian Mainline to crude service (proposed capacity, 1.1 MMb/d). Whether or not Vitality East will win the approvals it needs remains to be seen; TransCanada’s hope is to complete the undertaking in 2019. Then there’s the Dakota Access Pipeline (DAPL; see With or With out You), a 450-Mb/d, 1,168-mile, 30-inch-diameter greenfield pipeline that may run from the center of the Bakken in western North Dakota (then throughout South Dakota, Iowa and southwestern Illinois) to Phillips 66’s Patoka, IL refinery. DAPL finally has all its regulatory approvals and permits in hand, and the project’s prospects brightened just a few days in the past (August 2, 2016) when Enbridge and Marathon Petroleum agreed to accumulate practically half of Energy Switch Companions/Sunoco Logistics75% stake in the Bakken Pipeline System (BPS, whose different owner, with a 25% stake, is Phillips 66). BPS includes not only the planned DAPL line to Patoka but the Power Transfer Crude Oil Pipeline (ETCOP) mission, a planned $1 billion reversal of an current 30-inch-diameter pure gasoline pipeline often known as Trunkline (plus sixty six miles of latest pipe) that will connect Patoka and Power Switch Partnerscrude terminal in Nederland, TX. ETCOP doesn’t concern us as we speak (it can transfer crude to the Gulf Coast), however DAPL does, as a result of Bakken oil piped to Patoka on it may stream east/northeast on the Enbridge system to Sarnia. The newly introduced investments in DAPL by Enbridge and Marathon most likely means the demise of one other Bakken-to-market mission — Enbridge’s proposed 616-mile Sandpiper Pipeline from close to Tioga, ND to Enbridge’s crude terminal in Superior, WI. From Clearbrook and Superior, Bakken crude may very well be transported by Enbridge and other pipelines to refineries within the Midwest and japanese Canada, including Sarnia. Search for DAPL to be accomplished late this year (2016) or early in 2017, and for Sandpiper (whose anchor shipper was none aside from Marathon) to bite the dust soon.
In our subsequent episode, we’ll look on the NGL side of the Sarnia story — pipelines, rail, storage, fractionation capacity, the works! We think you’ll agree it’s an interesting tale, one whose chapters are nonetheless being written as new pipelines are constructed and as NOVA Chemicals1.Eight-billion-pound/yr ethylene plant (also referred to as a steam cracker) prepares to completely wean itself off naphtha in favor of NGLs.
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