Kalei Akamine: Got it. That’s perfect. My follow-up is more of a macro question on Syncrude premium. And these have been pretty sticky since the first quarter of ’22. Wondering if you guys can talk to the underlying fundamentals and the affect TMX may have on it next year?
Brad Corson: Sorry, I missed the first part of your question.
Kalei Akamine: On Syncrude premium, it’s been trading at a premium to WTI since the first quarter of ’22. I am just hoping that you can address the underlying fundamental. And how those may be changed or reinforced by the startup of TMX next year?
Brad Corson: Yes. You are exactly right. SSP has traded at a premium to WTI. It’s been quite strong. And we believe that with the startup of TMX and the overall impact that has on increase in egress for heavy crudes from the country and from Alberta that ultimately that helps to strengthen the value of really all of our crudes just through that increased access, less risk of constraints. And then, couple that with what’s happening on the demand side. And we see continued strengthening demanding for the heavy crudes, for the synthetic crudes, setting aside any seasonal turnaround plans. So, we continue to have a strong view on SSP.
Kalei Akamine: I appreciate the comments. I will leave it there. Thank you.
Brad Corson: Thank you.
Operator: We will go next to Menno Hulshof with TD Securities.
Menno Hulshof: Thanks, and good morning. I just have one question that ties into a lot of the things that have already been talked about. Can you just update us on where things stand with respect to sourcing of feedstock for the renewable diesel facility? And then, maybe any color how you are managing availability and price risk on feedstock would be helpful as well.
Brad Corson: Yes, thanks for that question. And I’ll make a couple of comments. And then, see if Sherri has anything else to add. But obviously I talked about progressing the construction activity that’s going extremely well. And equally the feedstock supply work is also going quite well. It’s commercially sensitive. And so, I don’t want to give too many details. But what I would share with you is our strategy is to both establish some long-term supply commitments for the feedstock as well as maintain flexibility to supplement that with shorter term or spot purchases as well. And through that combination, a long-term supply commitments for a large part of the supply, but keeping optionality to capture the market or maintain optionality in the spot market with not having all of the supply tied up.
We believe that’s a proven strategy. So again, without giving commercial details, we have secured some long-term supply arrangements already and we continue to progress that commercial work and we have complete confidence we will be ready when this project starts up in 2025. And our view is it will continue to be a very economic project for us. Anything, Sherri, you would add?
Sherri Evers: No, I think you’ve covered it very well. I mean, Canada is a net exporter of most of these feedstocks and so we continue to see the market here very robust and that even the consumption that we plan to use within the shred production shouldn’t have a material impact on the broader markets and so yes, there is obviously some strengthening of pricing, but Brad covered well that we’ve got a diversified strategy in terms of how we manage the cost of our feedstock.
