January 8, 2019
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.