Cenovus inks a deal with CN Rail to ship crude by rail
According to Reuters, Cenovus Energy has signed an agreement with Canadian National Railway (CNR) to move more crude-by-rail. The deal was inked before the cancellation of the Trans Mountain pipeline expansion.
Earlier this year, Cenovus CEO Alex Pourbaix said his company was considering a multi-year commitment to move 50,000 to 60,000 bbl/day of production out of its Christina Lake and Foster Creek operations by rail.
Details of the new agreement were not disclosed. According to government sources, crude shipments by rail should increase by 50% this year as more contracts are signed and new locomotives are delivered.