TransCanada receives long-term contracts for Energy East pipeline

Thu Aug 1, 2013 8:18am EDT
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Aug 1 (Reuters) - TransCanada Corp said it has received long-term contracts for about 900,000 barrels per day (bpd) for its proposed Energy East pipeline that would take Alberta crude to the Atlantic seaboard.

The project could deliver crude to refineries near Montreal, Quebec City and Saint John, New Brunswick and would be the first export line to Canada's East Coast.

The project is expected to cost $12 billion, excluding the transfer value of Canadian Mainline natural gas assets, and will have a capacity of about 1.1 million bpd.

The pipeline is expected to be in service by late-2017 for deliveries in Québec and 2018 for deliveries to New Brunswick.

TransCanada is also backing the controversial Keystone XL pipeline that could carry more than 800,000 bpd from Alberta to refineries on the Gulf of Mexico coast. This project is also being touted as a relief for Canadian oil producers worried about tight pipeline capacity.

But the pipeline, facing fierce opposition from environmental groups, is currently stalled as the company awaits a final decision from the Obama administration.

"Energy East is one solution for transporting crude oil but the industry also requires additional pipelines such as Keystone XL to transport growing supplies of Canadian and U.S. crude oil to existing North American markets," Chief Executive Russ Girling said in a statement on Thursday.