In a recent news release, Cenovus announced its purchase of Canexus Corporation’s North American Terminal Operations (NATO) for $75 million. The purchase of this crude-by-rail-trans-loading facility, located in Bruderheim, Alberta, will assist in strengthening market access for Cenovus, as well as aiding in capturing global prices for its oil.
Bob Pease of Cenovus says that “ownership gives us additional flexibility to get our growing crude oil production to market and allows us to reduce the risk to Cenovus due to pipeline congestion. It also increases our ability to access niche markets not served by pipeline.”
One key benefit of this acquisition is the ability to expand rail car loading capacity quickly and economically in order to adjust to shifting market conditions.
To read the full news release from Cenovus click here.