CALGARY, ALBERTA – TransCanada Corporation announced that is moving forward with the 1.1 million barrel per day (bbl/d) Energy East Pipeline project based on binding, long-term contracts received from producers and refiners.
The conclusion of the successful open season confirmed strong market support for a pipeline with approximately 900,000 bbl/d of firm, long-term contracts to transport crude oil from Western Canada to Eastern Canadian refineries and export terminals.
Energy Wire reports that at $12 billion (US$11.7 billion), the Energy East pipeline carries a length and price tag more than twice the size of TransCanada’s Keystone XL pipeline. “Should it win regulatory approval from the Canadian government, the project would begin in 2017 to ship crude to Quebec and New Brunswick refineries, which in turn are poised to route gasoline and diesel to the U.S. East Coast,” the news source adds.
Russ Girling, TransCanada's president and CEO, said in a press release that interest in Energy East supports refineries' desire to have access to a stable and reliable supply of Western Canadian crude oil — pushing out more expensive crude oil from foreign regimes. Eastern Canada currently imports approximately 700,000 bbl/d. It also confirms the desire producers have to support safe and innovative ways to get their crude oil to market.
"Energy East is one solution for transporting crude oil but the industry also requires additional pipelines such as Keystone XL to transport growing supplies of Canadian and U.S. crude oil to existing North American markets," added Girling. "Both pipelines are required to meet the need for safe and reliable pipeline infrastructure and are underpinned with binding, long-term agreements."
The Energy East Pipeline project involves converting a portion of natural gas pipeline capacity in approximately 3,000 kilometers (1,864 miles) of TransCanada's existing Canadian Mainline to crude oil service and constructing approximately 1,400 kilometers (870 miles) of new pipeline.
The pipeline will transport crude oil from receipt points in Alberta and Saskatchewan to delivery points in Montréal, the Québec City region and Saint John, New Brunswick, greatly enhancing producer access to Eastern Canadian and international markets. The pipeline will terminate at Canaport in Saint John, New Brunswick where TransCanada and Irving Oil have formed a joint venture to build, own and operate a new deep-water marine terminal.
TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate the pipeline project and terminal facilities in early 2014. For more information about the Energy East Pipeline project, visit the project websites at?energyeastpipeline.com or oleoducenergieest.com.