By Arathy Somasekhar and Nia Williams
HOUSTON, Aug 1 (Reuters) - About 19 Aframax ships loaded
around 330,000 barrels per day of crude oil in July at Canada's
West Coast in the second full month of operations on the newly
expanded Trans Mountain pipeline, slightly lower than June,
vessel-tracking data showed.
The pipeline loadings are closely watched for their impact
on global oil flows and freight rates. The pipeline's success is
also crucial to the Canadian government's plan to recoup its
investment by selling the $24.84 billion (C$34 billion) line.
July departures represent "pretty solid exports especially
given the demand in markets such as China haven't been
performing particularly well," said Rohit Rathod, an analyst at
energy data firm Vortexa.
Besides the 19, vessel Caspian Sea on Wednesday was moored
and prepared to load at the Westridge Marine terminal in
Vancouver.
Trans Mountain had loaded about 350,000 barrels per day
(bpd) on 20 Aframax vessels partially and one non-Aframax vessel
in June, the company said last month. It has the capacity to
load 34 Aframax ships a month.
The vessels, partially loaded Aframaxes able to carry about
550,000 barrels each, sailed largely to the U.S. West Coast and
China.
"We now have a group of vessels (Aframaxes) relocated to
America's west coast and engaged in carrying Canadian crude
either to the U.S. West Coast and even long haul to China,"
Vortexa's Rathod said.
Tanker Yuan He Wan loaded about 550,000 barrels of oil and
sailed to Ulsan in South Korea, marking the first cargo to head
to the Asia country since the expansion.
Refineries on the U.S. West Coast were still testing out the
heavy crude barrels available on Trans Mountain, and the cost of
using different-sized vessels to transport the crude was having
an impact on where the oil is being shipped, said Geoff Murray,
executive vice-president of commercial at shipper Cenovus Energy ( CVE )
.
Top U.S. refiners were key buyers of the crude in July.
"Marathon Petroleum's ( MPC ) Los Angeles Refinery, Valero
Energy's ( VLO ) Benicia refinery, Chevron Corp's ( CVX ) El
Segundo refinery were the typical destinations from the legacy
TMX pipeline loadings, and this remains the case as volumes ramp
up, with Phillips 66's Ferndale joining them in recent
months," said Matt Smith, an analyst at ship tracking firm
Kpler.
TMX did not immediately reply to a request for comment.
Chevron ( CVX ) and Valero also did not reply to requests for
comment, while Phillips 66 and Marathon Petroleum ( MPC ) declined to
comment.
Phillips 66 said this week the pipeline was running around
650,000 to 675,000 bpd and headed toward 700,000 bpd by the end
of the year.
"About two-thirds of incremental TMX barrels have gone into
Asia, which has been a bit of a surprise for us," said Brian
Mandell, a Phillips 66 vice president. The refiner benefited
from more barrels to the West Coast, he added.
TMX was estimated to be about 80% full, with all committed
capacity being used, two traders said. One of them added TMX was
running "exceptionally well."
Canadian oil shippers would be slow to utilize Trans
Mountain's 20% of uncommitted spot capacity because it is more
expensive than other pipelines, Cenovus' Murray added.