Sinochem Group, a Chinese conglomerate involved in the production and trading of chemicals, fertilizers, and oil exploration and production, has purchased the first cargo of crude oil to be shipped via a new pipeline in Canada, designed to transport oil from landlocked Alberta to… Pacific coast in order to export oil.

Traders, who did not reveal their identities, said that Sinochem had purchased a shipment of heavy crude oil amounting to 550,000 barrels from Suncor Energy, and that it would be loaded from the Trans Mountain Expansion pipeline in May and June.

The Trans Mountain Extension pipeline is the largest new pipeline in Canada in more than a decade, and will nearly triple export capacity; This creates an opportunity for Canadian companies to sell more crude oil to Asia and the West Coast of the United States.

The oil purchased by Sinochem is similar to the quality of Iraqi Basra crude, and it is possible that it will be refined into Coker-type units, according to traders.

The pipeline was supposed to start operating in 2017, but it faced several problems, including increased costs and construction accidents, with repeated delays and some regulatory obstacles. The government of Canadian Prime Minister Justin Trudeau purchased the Trans Mountain pipelines from Kinder Morgan. ) in 2018 with the aim of avoiding cancellation of the project.