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Cenovus to triple amount of crude moved by rail by end of next year
CALGARY – Cenovus Energy Inc. is looking to triple the amount of crude it ships by rail between the end of this year and next.
The Calgary-based oil company (TSX:CVE) is expecting to finish 2014 by moving 30,000 barrels by rail — up from the 10,000 it’s anticipating by the end of 2013.
As part of the strategy, Cenovus has signed multi-year leases for 800 railcars.
Of those, 500 will be equipped with heated coils so that they can carry thick oilsands bitumen.
Cenovus and many of its peers are looking at rail as an alternative to get their oil to the most lucrative markets, as environmental opposition has led to delays in building pipeline projects such as Keystone XL and Northern Gateway.
CEO Brian Ferguson says trains have been carrying materials much more hazardous than oil through North America for decades, so he doubts there will be much public outcry to increasing crude transport by rail.
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