Q: Does CNQ or IMO benefit from the increased capacity of the Trans Mt Pipeline ? If yes or no pls elaborate why for each. Are there any other beneficairies coming to light now that the start is near ? Thank you.
5i Research Answer:
Please also see this answer for additional stocks. Producers generally do not give out a lot of contract details on pipelines. Both IMO and CNQ should benefit indirectly as heavy oil spreads and Canadian discount spreads shrink with added capacity. It is hard to quantify though as so many other factors come into play with pricing. But generally the pipeline can be considered positive for these and the sector in general.