Energy East filing pushed to 2014
TransCanada Corp. says more environmental work is necessary.
Oil & Gas
Energy East pipeline
National Energy Board
SAINT JOHN, NB – TransCanada has delayed its goal of filing an application for its proposed Energy East Pipeline with the National Energy Board until next year because environmental work still needs to be completed, the company’s vice-president of eastern business development said Thursday.
Steve Pohlod told an energy conference in Saint John, NB, that there is too much work to do to be able to meet its initial goal of filing the application for the $12-billion project before the end of this year.
“There is still work we have to do out in the field and environmental work that we still have to undertake,” he said. “There is work that is required as a result of the changes in scope and the changes in route that we are still contemplating.”
The 4,500-kilometre Energy East Pipeline would ship up to 1.1 million barrels per day of oil from Alberta to refineries and export terminals in Quebec and New Brunswick.
The proposal involves converting a portion of TransCanada’s underused natural gas mainline to oil service and building 1,400 kilometres of new pipeline to Saint John.
The company said in a news release in August that it intended to proceed with filing the necessary regulatory applications for the project in early 2014.
The pipeline is one of two projects that have been proposed to move oil out of Western Canada.
TransCanada recently commissioned a study to back its project. The Deloitte & Touche LLP report predicts the equivalent of about 10,000 full-time jobs across the country will be needed to develop and build the Energy East Pipeline until 2018, with Quebec and Ontario coming out the big economic winners in the project.
Alberta and New Brunswick are staunch supporters of Energy East but it’s not known whether other provinces – most notably Quebec – are behind it. Prime Minister Stephen Harper has expressed federal support for the development, which would help landlocked Alberta get its oil to more lucrative markets.
The president of Irving Oil also told the conference that plans for a proposed new marine terminal for oil exports would have to be expanded because of the pipeline’s increased capacity.
Irving announced in August that it planned to partner with TransCanada to build a $300-million marine terminal at its Canaport facility near its refinery in Saint John to export crude from the pipeline to foreign markets. But Paul Browning said that was based on an original estimate of the pipeline carrying about 850,000 barrels per day, which has since been increased to 1.1 million barrels.
“There’s enough crude coming our way now that we’ve decided we need to expand it to be a two-berth jetty and we can take two large tankers simultaneously,” Browning said. “So that investment estimate will be revised upward as we do the engineering.”
He said the terminal project will require National Energy Board approval but it will be included as part of the overall pipeline application.
©The Canadian Press