TransCanada To Transport Oil FromWestern To Eastern Canada

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TransCanada Corporation recently completed a binding open season to obtain firm commitments from interested parties for a pipeline to transport crude oil from Western Canada to Eastern Canadian markets.
  The Energy East Pipeline project involves converting natural gas pipeline capacity in approximately 3,000-km of TransCanada’s existing Canadian Mainline to crude oil service and constructing up to approximately 1,400-km  of new pipeline. Subject to the results of the open season, the project will have the capacity to transport as much as 850,000 bopd, greatly enhancing producer access to markets in Eastern Canada.
  In 2012, Canada imported more than 600,000 bopd to supply its Eastern refineries. The Energy East Pipeline could eliminate Canada’s reliance on higher priced crude oil currently being imported.
  The open season follows a successful expression of interest phase and subsequent discussions with prospective shippers. Following the completion of the open season, if it is successful, TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate the required facilities, with a potential in-service date in late-2017. TransCanada is also beginning Aboriginal and stakeholder engagement and field work as part of the initial design and planning work for the project.
  In other news, Irving Oil and TransCanada announced a joint venture to develop and construct the $300 millon Canaport Energy East Marine Terminal in Saint John. 
  The project timeline for the marine terminal, which is expected to begin with engineering and design work in 2015, will coincide with development of the Energy East Pipeline project. The new Canaport Energy East Marine Terminal will be located adjacent to Irving Oil’s existing import terminal and will be operated by Irving Oil. The Canaport Energy East Marine Terminal will connect TransCanada’s Energy East Pipeline to an ice-free, deep water port.
  Once completed, it will allow Canadian producers direct access to world markets for exporting Canadian oil via the world’s largest crude carrying vessels.