* Regulator denies bid for priority pipeline access
* Says Chevron refinery able to operate under current
* Asks Kinder Morgan to revise allocation procedures
CALGARY, Alberta, July 11 Canada's National
Energy Board has turned down Chevron Corp's bid to
secure priority access to oil shipped on the Trans Mountain
pipeline for its British Columbia refinery, arguing the facility
could operate using existing supply sources.
Chevron had sought to secure supply for its 55,000 barrel
per day refinery in Burnaby because it was having difficulty
ensuring it could source enough oil on the chronically
over-booked pipeline, which carries Alberta crude to British
Columbia and Puget Sound, to keep the refinery operating.
The board, which regulates the Kinder Morgan Energy Partners
LP -owned line, said the refinery had been consistently
able to meet its 40,000 barrel per day minimum run rate despite
the lack of secure space on the 300,000 bpd Trans Mountain line.
"The Board was of the view that it is the responsibility of
Chevron to design a portfolio of supply options that will best
mitigate its supply risk and ensure the long-term viability of
the Burnaby Refinery," the regulator said in a statement.
Chevron sought priority access for the refinery, which
supplies a third of British Columbia's gasoline, last year,
after Kinder Morgan reduced the amount of space on the line
available to spot shippers.
Space on the line has been rationed since 2010, with
would-be shippers seeking to ship more crude than the line could
carry. The board said Kinder Morgan must revise the procedures
it uses to allocate space on the line or explain why its current
methods are adequate by the end of September.
A spokesman for Chevron said the company will comment after
it has reviewed the decision.