If Keystone XL dies, will Energy East replace it?

The Bloomberg Canada Economic Summit 2014, held yesterday in Toronto, focused on the natural resources sector, as well as technology, manufacturing and real estate, according to organizers. Kathleen Wynne spoke about Ontario’s plans to take advantage of the energy boom in Canada, specifically with reference to the proposed Energy East Pipeline. TransCanada has not yet applied to the National Energy Board for permission to build the line.

If approved, Energy East would cost $12 billion to build, and would carry Alberta crude to the Maritimes, from where it could be shipped to India. It would be North America’s largest oil line, with a capacity of 1.1 million barrels per day.

Energy-East-oil-pipeline-TransCanada-KeystoneXL-India-Alberta-oilsands-crude-EDIWeekly

The Chief Executive Officer of TransCanada, Russ Girling, acknowledged that his company’s troubles in getting the Keystone XL pipeline approved for transporting the same Alberta crude south through the United States have changed the relationship between Canada and the United States. If the US does not want Canada’s oil, then Energy East would be even more important to the company, and to the country. The US currently buys virually all—98 per cent—of Canada’s oil exports.

The Energy East pipeline has the tentative support of the New Democratic Party, as leader Thomas Mulcair called it preferable to Keystone and a step in the right direction because it would supply refineries in Canada.

Producers and governments are more definitely in favour of the line. New Brunswick’s energy minister, Craig Leonard, said that the province is “very keen” to see it built because of the economic benefits it would bring.

The head of Canadian Natural Resources, a major heavy oil producer, has said that exporting Canadian oil from the east coast is an option, a “good route” to get oil to India, which is a growing market. Steve Laut told Bloomberg that Indian buyers had already contacted his company and are keen to buy Canadian oil.

TransCanada says that oil could be flowing into Saint John by late 2018.

Did you miss this?

Other Popular Stories

  • Honda expansion a win for Ontario's auto sector
  • 12 new electric vehicles by 2022 Renaut-Nissan-Mitsubishi alliance commits 30% of overall production output
  • Bombardier holds update on CSeries aircraft
  • GPS III set to launch December 18: U.S. Air Force to launch via Space X Falcon 9 paylod; will be harder to jam, more secure and accurate
  • Wood-based battery the next energy storage solution?
  • Siemens Canada, Manitoba Hydro sign $800 million contract
  • Company opens new landing gear plant for "most important contract" ever
  • Canada's prosperity at risk from disruption, lack of skilled workforce: reports
  • Forestry sector providing job relief for former oil patch workers
  • Tesla now biggest car maker in California
  • Outperforming auto sector leads manufacturing "resurgence"
  • Wind capacity reaches 82,183 megawatts in US, enough to power 24 million homes
  • FedDev money for GTA aerospace company; Bombardier cutting losses on Learjet
  • New GO buses will be assembled in GTA
  • SpaceX Mars Exploration By 2019? Maybe not.
  • Detroit Auto Show Highlights
  • Interstellar Mission to Commemorate 100th Anniversary of Moon Landing
  • Gold miners expand production in Nunavut, estimated reserves in BC
  • Miners struggling with higher costs, lower prices
  • Developing BC's LNG industry would generate $7.4 billion per year: report
Scroll to Top