Reliance purchases its first Canadian Crude via Trans Mountain pipeline

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Reliance Industries has made its first purchase of Canadian crude oil through the new Trans Mountain pipeline, securing 2 million barrels for July delivery from Shell. This move marks a significant step as Reliance joins other Asian refineries in tapping into Canadian crude, leveraging the pipeline’s expanded capacity to nearly triple oil flow from Alberta to the Pacific Coast, enhancing access to Asian and US West Coast markets. The crude, Access Western Blend, will be transported in four 500,000-barrel cargoes via ship-to-ship transfers to a Very Large Crude Carrier destined for Sikka port, where Reliance operates the world’s largest refining complex. This transaction was finalized at a $6 per barrel discount to September ICE Brent prices. Additionally, other Asian buyers like Sinochem, Unipec, and PetroChina are also increasing their imports of Canadian oil, signalling a growing shift towards Asian markets due to higher demand and premium pricing opportunities.

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