TransCanada to fill in Energy East Pipeline application
The Canadian midstream company TransCanada is already working on filling in the application to be submitted to the Canada National Energy Board (NEB) for the regulatory approval of its Energy East Pipeline project.
This decision comes up in a context where TransCanada sees the probability of the US administration to approve its famous Keystone XL pipeline project reduces at the same speed as the oil and gas industry is able to ramp up the production of crude oil in USA.
The last events about the railways transportation to export oil from the Province of Alberta in Western Canada have opened the door for discussion about alternative mode of transportation such as the pipeline.
In addition the Eastern provinces of Canada are importing approximately 700,000 barrels per day (b/d) from Saudi Arabia, Venezuela, Nigeria, Algeria to supply their refineries.
Without new infrastructures, Canada would end up to limit its production and export of oil while it should increase import to meet the growing demand of its domestic market.
In this context, Canada Federal Government is motivating the involved Provinces of Alberta, Saskatchewan, Manitoba, Eastern Ontario, Quebec and New Brunswick to cooperate around all the projects that can contribute to unlock the western production of oil and eliminate eastern import.
As for all pipelines projects the main challenge is to find the most convenient route in respect with environmental impact, local acceptance and costs.
At this stage TransCanada is budgeting $12 billion capital expenditure to lay down the Energy East Pipeline Project.
TransCanada plans four hubs and two marine terminals
In order to connect Alberta oil fields to the refineries and oil terminal located in New Brunswick and Quebec, the Energy East Pipeline project should be 4,500 kilometers long.
Despite the length of the project, most of the distance would mostly require to convert existing under loaded natural gas pipelines.
Re-using existing pipelines is also reducing all technical studies and local acceptance challenges.
With 1.1 million b/d capacity, the Energy East Pipeline project would require the construction of only 1.400 kilometers of new pipeline.
If TransCanada is still working on the most convenient route, it has decided that the Energy East Pipeline will start from Hardisty in Alberta and will end up at Saint John in New Brunswick.
Together with the pipeline, TransCanada is planning the build oil terminal in:
– Quebec City, Quebec
– Saint John, New Brunswick
The Quebec City Terminal should be designed to provide feedstock to the refineries in Quebec and Montreal, and to supply a new build marine export terminal, same in Saint John where a marine export terminal should be added.
In submitting its NEB application in 2014, TransCanada is planning to turn the Energy East Pipeline on stream between Hardisty and Saint John in 2018.