UPDATE 4-TransCanada ramps up East Coast pipeline as Keystone stalls
By Scott Haggett
CALGARY, Alberta Aug 1 (Reuters) - TransCanada Corp announced plans on Thursday for Canada's largest pipeline, a 2,700-mile (4,400 km), $12 billion line to ship crude from the oil sands of Western Canada to the Atlantic, as its U.S.-bound Keystone XL project stalls in Washington.
Canada's No. 2 pipeline company said "strong market support" convinced it to build the 1.1-million-barrel-per-day Energy East Pipeline, which will bring crude from Alberta to refineries in Eastern Canada and to a new deepwater oil terminal on the Atlantic for export from Canada.
The Energy East line will be nearly a third larger than the 850,000 bpd capacity TransCanada proposed in April.
The line, which still needs regulatory approval, could be in service by late 2017 for deliveries to Quebec and 2018 for New Brunswick, potentially reshaping the Atlantic Basin oil market and opening up new markets for Canadian crude.
Customers have already pledged to use at least 900,000 bpd of the line's capacity, suggesting that producers and refiners will pay for an export route, while regulatory hurdles delay pipelines in Western Canada and to the United States.
"It looks like they got far more interest than they were initially expecting," said analyst Sandy Fielden of consulting firm RBN Energy in Austin, Texas. "It also solves two problems for the company as they have this large natural gas pipeline that has been made largely redundant." Continued...