East Pipeline to Carry Crude Oil from Western Canada to Markets in Eastern Canada and Abroad

This video presents “TransCanada announces plan for oil pipeline across Canada.”

  • Canadian oil firm, TransCanada, has announced plans to construct an oil pipeline that will run from western Canada to the Atlantic coast, Reuters reports.”
    • At the same time, TransCanada’s Keystone XL project, which would make Canadian oil available to the U.S., has been stalled in response to resistance from environmental groups, according to Reuters.
    • The proposed pipeline would carry 800,000 barrels a day from Alberta to refineries on the Gulf of Mexico.
      • TransCanada is waiting on a decision from the White House to proceed, Reuters said.
  • The proposed Canadian East Energy pipeline will run from Hardisty, Alberta to a new deep-water seaport in St. John, New Brunswick.
    • At capacity, it will be able to transport up to 1.1 million barrels per day, according to the BBC.
  • The pipeline would meet eastern Canada’s oil needs which are currently being met with foreign resources.
    • Eighty-two percent of the oil refined in Canada’s Atlantic Region is imported from other countries, while the figure for Québec province is 92 percent.
    • Surplus oil from the west would be available for export.
  • The pipeline project will link new construction with 1,900 miles of an existing natural gas line.
    • It could deliver crude to refineries in Montréal, Québec and St. John, Reuters reported.
    • It is slated to be in service by late-2017, with deliveries to New Brunswick expected by 2018.

TransCanada announced its Energy East oil pipeline proposal on August 1, 2013. The proposal is an interprovincial undertaking that requires approval from the National Energy Board to proceed.

  • The Ontario government has asked the Ontario Energy Board (OEB) to undertake consultations and prepare a report on the proposed Energy East Pipeline.
  • The consultation process will provide an opportunity for all Ontarians, including First Nation and Métis communities, and stakeholders to share their views on the pipeline proposal.
  • The province supports an expanded and diverse supply of energy across Canada and acknowledges the potential economic benefits from the proposed project.

The proposed Energy East Pipeline is a project that falls under the jurisdiction of the National Energy Board, and the OEB’s report will inform Ontario’s participation in the federal approval process.

  • The provincial submission will be comprehensive and will consider every viewpoint, in particular the reliability of the existing natural gas supply used by Ontario families and businesses.

To ensure the project is in the best interest of Ontarians, the report will consider:

  • Ensuring safety for the people of Ontario
  • Protecting the environment
  • Maintaining the reliability of Ontario’s natural gas supply
  • Establishing future benefits for the economy.

Here is an excerpt of Minister Chiarelli’s remarks (pdf) about the Energy East Pipeline Announcement.

“The proposed project… would see an existing Natural Gas Pipeline converted to carry crude oil from Western Canada to markets in Eastern Canada and abroad.

This pipeline infrastructure already spans 3,000 kilometres through Canada and the current proposal would see an additional 1,400 kilometres of pipeline constructed, mostly in Quebec and New Brunswick, but starting at Iroquois, Ontario, not far from the National Capital Region.

With a total project length of 4,460 kilometres, a full 47 per cent is located in Ontario – 2,122 kilometres worth. This line stretches from the Manitoba boarder, west of Kenora, and runs through dozens of communities, including North Bay and down through the Ottawa valley before crossing into Quebec.

Indeed, Energy East is the largest pipeline project in Canada in over 50 years.

Planned by TransCanada, Energy East would carry 1.1 million barrels of oil per day from Western Canada to refineries in Quebec City, Montreal and Saint John, New Brunswick.

Pending federal National Energy Board regulatory approval, the Energy East project would be in service sometime in 2018….

And while this particular project has not yet begun the National Energy Board process of regulatory approvals, TransCanada has signaled these filings will occur in early 2014.

As is common practice with such National Energy Board hearings, Ontario has the right to be an intervener and indeed will exercise its rights of intervention on behalf of Ontario residents and businesses.

But we need to ensure that our intervention is based on substantive and credible feedback from communities along the proposed route; industrial stakeholders concerned about natural gas rates; as well as ecological and environmental experts who are concerned about the impact on the natural environment and climate.

That’s why the Government of Ontario is taking precedent-setting action.

In order to better inform our intervener status, the Ontario Energy Board has been directed to undertake public consultations and to complete a report for Ontario’s Ministry of Energy on the proposed Energy East Pipeline, to inform the Ontario Government’s intervention at the National Energy Board….it is not the intention of the Ontario Government to add additional regulatory oversight.

Rather, our intent is to ensure the voices and concerns of all Ontarians find expression during the coming federal regulatory process.

To that end, our Government has set the following principles to guide our approach to interprovincial pipeline projects, moving forward:

  • They must meet the highest available technical standards for public safety and environmental protection;
  • They must demonstrate they have world-leading contingency planning and emergency response programs;
  • They must fulfill their duty to engage and consult with Aboriginal communities and local municipalities;
  • They must demonstrate economic benefits and opportunities to the people of Ontario over both the short and long-term;
  • And finally, any economic and environmental risks and responsibilities, including remediation, should be borne exclusively by the pipeline companies.

To be very clear, the Ontario government supports the pursuit of an expanded and diverse supply of energy across Canada…”

The Honourable Bob Chiarelli, Minister of Energy

TransCanada Energy East Pipeline Proposal
TransCanada Energy East Pipeline Proposal


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