UPDATE 2-TransCanada confident Energy East line will proceed

Fri Jul 26, 2013 3:38pm EDT
 
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* Energy East open season results to come within two weeks

* Keystone XL still awaits U.S. approvals

* Q3 comparable profit C$0.51/shr vs C$0.43

* Shares rise 0.2 pct

CALGARY, Alberta, July 26 (Reuters) - TransCanada Corp , which earlier reported a 34 percent jump in second-quarter profit on Friday, said it expects its proposed Energy East pipeline will receive sufficient support from potential shippers to allow construction to proceed.

The company, which is also backing the controversial Keystone XL project, said the planned 700,000-barrel-per-day project, even as it awaits results from a open season process, where shippers sign long-term contracts for space on the line. Those results are expected within two weeks.

But TransCanada Chief Executive Russ Girling said he is confident the project, which will take Alberta crude to the Atlantic seaboard, is expected to go ahead, will garner enough support to allow construction to proceed.

"We continue to feel very positive about this initiative and we have received significant interest from both producers and refiners," Girling said on a conference call.

The line, which could deliver crude to refineries near Montreal, Quebec City and Saint John, New Brunswick, would be the first export line to Canada's East Coast. It would supplant imported crude that eastern refineries currently rely on and offer additional pipeline capacity for rapidly expanding oil sands production.   Continued...