Thursday, August 1, 2013

TransCanada Moving Forward With 1.1 Million BOPD Energy East Pipeline

Oil & Gas Journal is reporting:
TransCanada Corp is moving forward with its 1.1 million b/d Energy East Pipeline project based on binding, long-term contracts received from producers and refiners. A recent open season on the pipeline concluded with the company having signed 900,000 b/d of firm, long-term contracts to transport crude oil from Western Canada to Eastern Canadian refineries and export terminals.

Eastern Canada currently imports 700,000 b/d of crude oil, according to TransCanada.

The pipeline will terminate at Canaport in Saint John, where TransCanada and Irving Oil have formed a joint venture to build, own, and operate a new deep water marine terminal.
TransCanada intends early next year to proceed with the necessary regulatory applications for the pipeline project and terminal.
The company expects Energy East to cost about $12 billion, excluding the transfer value of Canadian Mainline natural gas assets.
So, what about the Keystone?
The decision to move forward on Energy East has not diminished the need for Keystone XL, according to TransCanada Pres. and Chief Executive Officer Russ Girling.
So, we'll see. 

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