Spectra Awarded Long-Term Shipping Contracts
Spectra Energy Corp. (NYSE: SE) and Spectra Energy Partners (NYSE: SEP) have announced new long term shipping agreements on the Express oil pipeline. Contracted commitments have almost doubled since last open season, reaching 225 thousand barrels per day. The Express pipeline begins in Hadisty, Alberta and connects to the Platte pipeline in Casper, Wyoming.
The volume of contracted shipments comes close to meeting the 785 mile pipeline’s maximum capacity of 280 thousand barrels per day. Contract lengths are ranging from 1.5 to 11 years. The first of these contracts will come into effect in October, with remaining contracts coming into effect over the next two years.
Record Oil Demand
Global demand for oil has officially entered record territory. Much of this growth is coming from Asia, which has recently passed North America as the largest oil consumer on the planet. The Energy Information Administration expects China to surpass the U.S. as the largest importer of oil as early as next month. As North America continues its oil revival, this means increased opportunities for U.S. and Canadian exports. For more information on investing opportunities global oil demand, click here.