TransCanada Seeks NEB Approval For $12 Billion Energy East Project

December 2014, Vol. 241, No. 12

TransCanada has filed a formal project application for the Energy East Pipeline Project with Canada’s National Energy Board (NEB). The detailed application for the 1.1- MMb/d pipeline comes after more than 18 months of environmental studies, engineering work and public consultation, making it one of the most extensive regulatory applications in TransCanada’s history.

The project involves converting 1,864 miles of TransCanada’s existing Canadian Mainline system from natural gas to crude oil transmission service and constructing 990 miles of pipeline. The pipeline will transport crude oil from receipt points in Alberta and Saskatchewan to refineries in Montréal and Lévis, Québec and to a proposed new marine terminal in Cacouna, Québec.

The pipeline will terminate in Saint John, New Brunswick at the Irving oil refining complex which is the largest in Canada and one of the 10 largest refineries in North America. In addition, TransCanada and Irving Oil Co. have formed a joint venture to build, own and operate a deepwater marine terminal.

Along with the Energy East Pipeline Project application, TransCanada filed an application to build and operate the Eastern Mainline Pipeline Project in southern Ontario. The proposed $1.5-billion, 600 MMcf/d project will provide an additional 156 miles of natural gas pipeline in an area where the demand and need are strong – the Toronto-to-Montréal corridor – providing greater access to affordable supplies from the northeastern United States.

The combination of the conversion of 1,864 miles of existing natural gas infrastructure and construction of the Eastern Mainline Pipeline Project will result in savings of $950 million in transmission costs over the next 15 years for Canadian Mainline natural gas shippers.

The Energy East Pipeline Project is expected to cost $12 billion, excluding the transfer value of Canadian Mainline natural gas assets, and is anticipated to be in service for deliveries in Québec and New Brunswick by late 2018.

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