Move over Keystone XL. There's a new pipeline in town.

With the fate of the Keystone XL pipeline up in the air, the company behind the controversial pipeline is pushing forward with a separate pipeline to refineries in Canada.  

Todd Korol/Reuters/File
TransCanada President and CEO Russ Girling (2nd L) announces the new Energy East Pipeline during a news conference in Calgary, Alberta, in August.

TransCanada Corp has released a study commissioned from the consulting and audit firm Deloitte Touche that estimates the benefit to Canada from the company's proposed Energy East Pipeline from Alberta to the Atlantic Coast, just as Canadian Natural Resources Minister Joe Oliver met this week with U.S. Energy Secretary Ernest Moniz to put the ball back in Washington's court over the controversial and long-delayed Keystone XL Pipeline.

The Energy East Pipeline would feed refineries in Quebec and New Brunswick that at present get 86 per cent of their crude supply from the international market at much higher prices than they would pay for crude from Alberta. The Deloitte report estimates that it would boost Canadian gross domestic product by $35 billion over 40 years, of which about one-third would accrue to Ontario, one-quarter to Alberta, and one-fifth to Quebec. Governments across the country would collect over $10 billion from the project over the next four decades.

Construction cost estimates for the pipeline range up to $12 billion. It would carry more than 1.1 million barrels per day (bpd) of crude oil, a figure recently increased from 850,000 bpd in view of anticipated increased demand from refineries in the east of the country. TransCanada still needs approval from Natural Resources Canada and the National Energy Board, but there is strong federal and multi-provincial political momentum in its favor. The project would be expected to be completed by 2017. (Related Article: Canada Plans Strategic Pipeline Infrastructure while US Stalls on Keystone

At the same time Oliver brought proposals from Ottawa for cooperation with the Washington on common emissions targets for oil-sands extraction, hydraulic fracturing ("fracking"), and other non-conventional sources of oil and gas. He sought to address, he said, "the importance of modern energy infrastructure and re-enforcing its safety, developing unconventional oil and gas resources responsibly, supporting responsible use of energy, and demonstrating joint global leadership on energy and environmental issues."

The Canadian press views this visit as a last-ditch effort to reach agreement on Keystone XL Pipeline by framing the issues more broadly. The Energy East Pipeline is only one of several projects under way to find buyers other than the United States for Canadian energy resources.

Ottawa has drafted new regulations concerning greenhouse gas emissions, but Washington has adopted the stance that they are insufficient to satisfy U.S. environmental groups critical of the project. Canadian proponents of the Keystone XL have grown weary of repeated delays, to the point that they no longer trust Washington to honor any commitments that it may make.

The Canadian government, on the other hand, is also driven by the goal of avoiding disadvantage to its own energy sector companies when it announces its greenhouse gas reduction targets, in line with international commitments, before the end of the year. That is another reason why it wishes to frame them within a joint U.S.-Canadian policy on climate change.

 

Original Article: http://oilprice.com/Energy/Energy-General/Momentum-Builds-for-New-Canadian-Pipeline-as-Keystone-Continues-to-Stall.html

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.