Marketlink crude line to cut some rates from Cushing
TransCanada Corp’s Marketlink pipeline filed with U.S. energy regulators to cut certain spot rates to haul crude from Cushing, Ok., to Port Arthur and Houston, Texas, in a move expected to draw down inventories at the storage hub.
According to Reuters, the pipeline plans to reduce the temporary discounted spot rate to $3.60 per barrel from $3.875/bbl to ship light crude, while the temporary discounted spot rate to ship heavy crude would be cut to $4.32/bbl from $4.655.
Light crude from Cushing to Houston would cost $3.60/bbl compared with current $3.875/bbl; heavy crude would cost $4.32/bbl vs $4.655/bbl.
The drop in rates is effective Feb. 1, and is expected to boost flows out of the Midwest and keep the U.S. crude export window open, according to dealers.