Name of the Project
Energy East pipeline project.

Location
The project involves three significant components. Energy East will convert an existing natural gas pipeline into an oil service between Burstall, in Saskatchewan, and Cornwall, in Ontario, Canada. New sections of pipeline will also need to be built in Alberta, Saskatchewan, Manitoba, Eastern Ontario, Quebec and New Brunswick to link up with the newly converted pipe.

Client
TransCanada.

Project Description
The 4 600 km Energy East pipeline project will transport 1.1-million barrels of crude oil a day from receipt points in Alberta and Saskatchewan to Saint John, in New Brunswick, with additional delivery points in Montreal and the Quebec city region.

The plan is to convert about 3 000 km of TransCanada’s existing Canadian Mainline natural gas system into an oil service and build up to 1 600 km of new pipeline to transport the crude oil.

The project will also require associated facilities, such as pumpstations, tank terminals and marine facilities, to successfully transport the crude oil from Alberta to New Brunswick and access new markets.

The pipeline will include four oil tank terminals, 65 to 70 pumpstations and two marine-tanker loading facilities.

The pipeline will terminate at Canaport in Saint John, New Brunswick.

Potential Job Creation
Not stated.

Value
The project is expected to cost $15.7-billion.

Duration
Construction will start once all the necessary regulatory approvals have been received, with the pipeline slated to be in service by 2020.

Latest Developments
TransCanada has said the viability of its Energy East pipeline project, as well as that of its Eastern Mainline project, is in doubt after the Canadian National Energy Board (NEB) released a broader scope under which the environmental assessments (EAs) for the two projects will be dealt with on August 23.

TransCanada has asked the NEB to suspend its applications for 30 days in an effort to stop the clock on the NEB’s application processing timeline, while giving TransCanada time to conduct a careful review of the changes announced by the NEB on August 23, regarding the list of issues and EA factors of the projects, while understanding how these changes impact the projects' costs, schedules and viability.

Owing to the changes, TransCanada will cease recording Allowance for Funds Used During Construction on the projects.

Should TransCanada decide not to proceed with the projects after a thorough review, the carrying value of its investment in the projects, as well as its ability to recover development costs incurred to date will be negatively impacted on, the company has warned.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Energy East has had several setbacks in Quebec. In March this year, the provincial government filed an injunction against the pipeline to force an environmental review, to which TransCanada later agreed.

Contact Details for Project Information
TransCanada investor and analyst enquiries David Moneta, tel +1 403 920 7911 or email EnergyEast@TransCanada.com.