TransCanada Increases Budget for Energy East Pipeline
December 17 2015 - 10:50AM
Dow Jones News
TransCanada Corp. said Thursday it had amended its application
for a major Canadian pipeline project, a move that would increase
the project's cost to 15.7 billion Canadian dollars ($11.4 billion)
from C$12 billion.
TransCanada formally proposed the 1.1-billion-barrel-a-day
project, known as Energy East, in October 2014. The pipeline would
increase western Canadian oil producers' access to east-coast and
offshore refineries, helping to alleviate a bottleneck that weighs
on Canadian oil prices.
The Calgary, Alberta-based company said the amendment to its
existing application with Canada's main energy regulator, the
National Energy Board, reflects changes aimed at satisfying
environmental and community concerns about the project. The changes
include close to 700 route ranges, it said.
In November, the Obama administration rejected another proposed
TransCanada project, Keystone XL, some seven years after it was
proposed. That project would have spanned some 1,700 miles and
connected Canadian oil producers with U.S. Gulf Coast refineries,
but met with stiff resistance from environmental groups.
The Energy East project is still expected to start up in 2020,
TransCanada said Thursday. It had initially said the project could
be in service by late 2018, but earlier this year pushed the date
back to 2020 following its decision not to build a marine terminal
and associated tank terminals at Cacouna, Quebec, because of
concerns about Beluga whales in the area.
Energy East has been championed as a nation-building project
that would benefit eastern Canadian refineries while helping to
address Canadian producers' market-access challenges. Opponents,
though, say the project would increase greenhouse gas emissions by
allowing oil-sands producers to ramp up production.
Write to Carolyn King at carolyn.king@wsj.com
(END) Dow Jones Newswires
December 17, 2015 10:35 ET (15:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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