Canadian Petroleum Equalization
Light Crude, Medium Crude and Condensate produced in Canada is usually comingled into a few streams to be transported by pipeline to market. Since individual deliveries of these commodities are slightly different in quality, the pipeline Shippers have developed an equalization system. The equalization system adjusts the value of each delivery to reflect that quality difference.
Equalization Steering Committee
Canadian pipeline system operators administer the Equalization system. The Shippers through the Equalization Steering Committee “establish and govern this equalization process”.
This website supports the Equalization Steering Committee by providing relevant information and resources such as studies and procedures that the Equalization Steering Committee has developed for administration of the equalization system. This site also provides current and historic penalty values that have been used for equalizing crude values.
The crude and condensate equalization process has been developed so that all positive quality value adjustments offset negative value adjustments. This results in a system within each type of crude or condensate where there is no profit or loss as a result of the equalization process.
For crude, quality penalties or credits are determined from the density and sulphur content of the crude. The penalty values applied to density and sulphur differences are updated periodically.
For condensate, quality penalties or credits are determined from the density, sulphur content, and light ends (butane and lighter components) content of the condensate. The penalty values applied to density, sulphur and light ends differences are updated monthly.
The Equalization Procedures Guide provides the mechanism that is used for determination of the penalty values and the procedures for utilizing those penalty values. For further details please visit the EQ Documentation page.