[cal_guy]

Originally Posted by Regorium

In my opinion, this was clearly plan F. Shipping gas is far worse than oil in terms of profitability (especially at half of what they were charging before), but a full pipe is more profitable than an empty pipe.

Obviously TransCanada has been trying to figure out ways to get the utilization back up. Converting to oil was one way, and dropping the price by half and ship gas was another way. If I was running TRP, I know which one I would want for the company.

Getting the rate discount approved does change the economic analysis slightly - is spending the massive amount of money, time, tarnishing the entire brand fighting with first nations and protesters worth the increased profitability 5 years down the line? Or with the rate approval, we can spend no money, keep the asset slightly profitable, and focus our money elsewhere?

It wasn't that long ago that oil sand producers and buyers were suing because there was too much pipeline capacity.

https://beta.theglobeandmail.com/rep...beandmail.com&