No Promises For Energy East Pipeline

BMI View : TransCanada's ambitious Energy East Pipeline has a long and arduous road ahead of it. Canada's notoriously complex and slow regulatory approval process will ensure that construction of the project will remain far from certai n for some time. A s such , we will not be factoring its development into our forecast for oil and gas pipelines infrastructure industry value, or o ur outlook for oil production and crude exports .

Despite the recent hype surrounding TransCanada 's latest proposal - the CAD12bn Energy East pipeline - we believe this project remains a significant distance from progressing. The 4,500km pipeline, which is hoped to open up oil sands crude in Western Canada to new demand markets via the east of the country, is likely to be hugely controversial with environmentalists, First Nations populations and Québécois.

The pipeline would transport crude from Hardisty in Alberta to St John in New Brunswick, where a new deepwater port will be constructed at the existing Canaport site. The pipeline would have spurs to additional export terminals, in Saskatchewan and in Quebec. The project involves the construction of new pipeline, predominantly in Quebec and New Brunswick, and in parts of Alberta, and would connect to an existing, under-utilised gas pipeline which currently runs through Saskatchewan, Manitoba and Ontario, which would be converted to transport crude. The pipeline would have a daily capacity of 1.1mn barrels.

Treading The Line
Energy East Pipeline, Estimated Route

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This article is tagged to:
Sector: Oil & Gas, Infrastructure
Geography: Canada

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