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Suncor Energy Inc. (USA) (NYSE:SU)’s First European Milestone

Boston, MA 09/24/2014 (wallstreetpr) – One of the biggest Oil & gas supplier of Canada, Suncor Energy Inc. (USA) (NYSE:SU) will ship its maiden tanker containing heavy crude from the East Coast of Canada to Europe. This was confirmed by a company’s spokesperson on Tuesday.

Sneh Seetal from Suncor told that the tanker Minerva Gloria will carry a crude oil cargo from the port of Sorel-Tracy located on the banks of St. Lawrence River in Quebec. However, she did not reveal the destination in Europe where the ship will be heading in order to maintain the confidentiality of the subject.

The owner of Sorel-Tracy is Kildair Service Ltd. where the crude oil was delivered using railway services. Michael Cohen, the Barclays analyst tells that he does not know that in past any such crude oil cargo was sent via railways to Europe. The Alberta region has been interested to sell its crude at a high price in International markets and has been looking for a good opportunity since last several years.

Environment Issues

This new route of a bigger and a heavier ship has alerted several environmentalists who now are looking for the locations or mid points where oil production leads to emission of greenhouse gas. Environmentalists plan to block such avenues which are harming the nature. They have been putting hard efforts for last six years, to get the Keystone XL pipeline which will start from Alberta and go till US Gulf Coast. However, high demand of oil and bigger and rich discounts keep companies attracted to find out new ways to sell crude to markets, even if it includes using newer means like railways.

Increasing Customer Base

Suncor Energy’s shipment also indicates that Canada is even ready to compete with other leading crude oil producers from Saudi Arabia or Russia in order to add customers in Europe. Earlier this year, another pipeline company Enbridge Inc (TSE:ENB) also shipped first cargo of Canadian Crude from US Gulf Coast to Europe. It is noteworthy that Suncor Energy Inc. (USA) (NYSE:SU) not only shipped its own crude but also crude purchased from other producers from Western region of Canada.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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