Suncor leasing oil tanker ships to carry crude from Trans Mountain pipeline expansion [Video]

Suncor Energy Inc. says it is leasing and operating a number of Aframax oil tanker ships to carry crude from the recently completed Trans Mountain pipeline expansion to Pacific markets.

By leasing and operating the tankers itself, Suncor saves on shipping costs, said Dave Oldreive, the company’s executive vice-president responsible for refining, sales and marketing.

“We’re well-positioned to deliver volumes to our customers and remove that middleman and capture the full value for Suncor,” Oldrieve said on a conference call with analysts on Wednesday, during which executives discussed the company’s first-quarter financial results.

The Trans Mountain pipeline expansion, which runs from Alberta to the B.C. coast and marked its official opening last week, gives Canadian oil shippers access to an additional 590,000 barrels-per-day of pipeline capacity.

The expanded pipeline will “clearly increase” the profitability of Suncor’s oilsands production, Oldreive said, by reducing the discount Canadian oil shippers have historically received for their product in part due to a lack of …