Suncor aims to gain a competitive edge through the Trans Mountain pipeline

Suncor Energy Inc. is gearing up to negotiate directly with customers as it targets new markets through Canada’s recently operational Trans Mountain pipeline expansion. The Alberta-based company, which reported impressive net earnings of $1.6 billion in the first quarter, is looking to leverage its trading platform to eliminate middlemen and secure a competitive advantage.

Dave Oldreive, Suncor’s executive vice-president of downstream, highlighted the company’s strategy of transacting directly with customers to capture the full value of transactions. Suncor has also leased vessels in the Pacific Ocean to gain a cost advantage in shipping.

The new 1,150-kilometre pipeline, part of a twinning project connecting Alberta and British Columbia, is expected to deliver around 890,000 barrels of oil per day. This expansion is anticipated to reduce the price differential between Canadian heavy crude oil and U.S. light crude oil, making transportation more cost-effective and opening up new markets.

Suncor aims to reach markets in California and Asia through the pipeline, strengthening relationships with these regions to secure better deals. Other oil producers like Cenovus Energy Inc. and Canadian Natural Resources Ltd. are also optimistic about the pipeline’s potential to enhance exporting opportunities and improve market conditions for Canadian companies.

Despite facing shareholder resolutions at its annual general meeting, Suncor remains focused on maximizing its operational efficiency and expanding its market reach. With a strong emphasis on direct customer negotiations and strategic market positioning, Suncor is poised to capitalize on the opportunities presented by the Trans Mountain pipeline expansion.