Name and Location
Energy East pipeline project, Canada.

Client
TransCanada.

Project Description
The 4 400 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 to build up to 1 400 km of new pipeline to transport the crude oil.

The project involves three significant components. Energy East will convert an existing natural gas pipeline to an oil service between Burstall, in Saskatchewan and Cornwall, in Ontario. 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.

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.

Value
The project is expected to cost $12-billion.

Duration
The project has been postponed from 2018 to 2020.

Latest Developments
TransCanada has cancelled plans to build a marine terminal and oil tank farm at Cacouna, in Quebec, owing to strong local opposition in favour of protecting the St Lawrence Estuary, the habitat of a population of threatened beluga whales.

The result will be postponed to the earliest date at which the pipeline could deliver oil to Eastern Canada by two years to 2020.

The company has decided to alter the scope of the $12-billion Energy East pipeline project as part of its continued commitment to stakeholder consultation, environmental stewardship and community safety.

“This decision is the result of the recommended change in status of the beluga whales to endangered and ongoing discussions we have had with communities and key stakeholders," says TransCanada president and CEO Russ Girling.

The pipeline infrastructure operator is reviewing potential alternative terminal options in Quebec, but has stressed that Quebec and New Brunswick refineries will continue to be connected directly to the Energy East pipeline.

TransCanada will also move forward the date by which it will submit its emergency response plans for the project, which are typically finalised and provided to the National Energy Board (NEB) in the latter part of the regulatory process.

TransCanada has said that it will advise the NEB of the outcome of its evaluation of alternative marine terminal sites by the fourth quarter.

The 1.1-million barrels a day Energy East project has secured about one-million barrels a day of firm, long-term contracts.

While the exact route will be determined only after public and regulatory review, the planned starting point is a new tank terminal in Hardisty, Alberta. Three other new terminals will be built along the pipeline’s route, including one in Saskatchewan, one in the Quebec City area and another in the Saint John, New Brunswick, area.

The terminals in the Quebec City and Saint John areas will include marine tanker loading facilities. The project will also deliver oil to existing Quebec and New Brunswick refineries.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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