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

  • Canada's GDP strength was east, west and north, not central
  • World's biggest gold-copper mine wins government approval in BC
  • GO Transit may deploy hydrogen-power rather than electric; consults with Canadian fuel cell technology company that worked on world's first hydrogen-powered train
  • PPG Industries expands NA presence with $1 billion coatings takeover
  • Ford looking to use agave plant biomass to make green plastic for cars
  • Construction industry will boom in Northern Ontario, GTA: report
  • Canada's energy sector "at a crossroads," risks falling behind
  • Ontario College of Trades report recommendations accepted by minister
  • Union workers safer in construction trades: study
  • Oxygen from moondust? The European Space Agency is working on an "breathable air" plants for moon bases
  • IBM reveals super-efficient solar power system prototype
  • Pratt & Whitney Canada engines to power new Gulfstream jets
  • Brighter outlook for Canada's economy in 2016: RBC
  • India interested in oil and gas as well as uranium from Canada
  • De Beers new diamond mine in far north among world's largest
  • WindTwin digital platform increases efficiency on wind farms and tests maintenance upgrades
  • Industry-academic R&D cooperation to boost Ontario's aerospace sector
  • Most important auto tech of all: safety. 2017's safest cars according to IIHS and a quick look back at 1959
  • New MRO operation rising in former Aveos plant
  • Builders urge Ontario to allow six-storey wooden structures
Scroll to Top