Aug 1 TransCanada Corp said it
has received long-term contracts for about 900,000 barrels per
day (bpd) for its proposed Energy East pipeline that would take
Alberta crude to the Atlantic seaboard.
The project could deliver crude to refineries near Montreal,
Quebec City and Saint John, New Brunswick and would be the first
export line to Canada's East Coast.
The project is expected to cost $12 billion, excluding the
transfer value of Canadian Mainline natural gas assets, and will
have a capacity of about 1.1 million bpd.
The pipeline is expected to be in service by late-2017 for
deliveries in Québec and 2018 for deliveries to New Brunswick.
TransCanada is also backing the controversial Keystone XL
pipeline that could carry more than 800,000 bpd from Alberta to
refineries on the Gulf of Mexico coast. This project is also
being touted as a relief for Canadian oil producers worried
about tight pipeline capacity.
But the pipeline, facing fierce opposition from
environmental groups, is currently stalled as the company awaits
a final decision from the Obama administration.
"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," Chief Executive Russ
Girling said in a statement on Thursday.