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.
Taking the path of least resistance.
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