Keystone XL lessons applied to Energy East pipeline – TransCanada

Rallies against the Keystone XL pipeline attracted up to 10,000 people, including many celebrities, which has put the pipeline on the front burner of American politics. Photo: Facebook.

Opposition, delays in approval for Keystone XL have convinced pipeline builder to change strategy

TransCanada says it learned valuable lessons from opposition to its Keystone XL pipeline project and plans to approach the newly proposed Energy East project quite differently.

Alex Pourbaix, president of oil pipelines. Photo: Handout.

Alex Pourbaix, president of oil pipelines, says TransCanada is learning from experience as it advances its proposed Energy East pipeline, which would move more than one million barrels of crude per day to Quebec and New Brunswick. The company hopes to avoid a repeat of the delays its Keystone XL, according to Pourbaix.

For instance, he says the company is doing more listening and less talking at community meetings along the pipeline’s proposed route and is going about it in a “very humble” manner.

As well, Pourbaix says TransCanada will look to share more of the pipeline’s upfront costs with customers so that it’s not on the hook for everything in the event of a delay.

The Energy East pipeline is expected to cost approximately $12 billion. Energy East will have a capacity of approximately 1.1 million barrels per day and is anticipated to be in service by late-2017 for deliveries in Québec and 2018 for deliveries to New Brunswick.

TransCanada announced in August it planned to go ahead with Energy East. The company says Eastern Canada currently imports 700,000 barrels of crude oil a day and its customers wanted a more stable source of supply.

TransCanada CEO Russ Girling is optimistic Energy East pipeline will be supported by Eastern Canadians. Photo: TransCanada.

TransCanada applied to build Keystone XL more than five years ago and is hoping a final U.S. decision on the pipeline will be made in early 2014.

Last month, a group of 165 prominent American business leaders wrote President Barack Obama urging him to approve Keystone XL. The CEOs, presidents and chairpersons represent a diverse group of industries, including members of the National Association of Manufacturers, the Business Roundtable and U.S. Chamber of Commerce. They said that approving construction of the 1,179-mile pipeline project, which has now been under government review for more than five years, would be a boon to the American economy.

“As these prominent business leaders said in their letter to President Obama a positive decision on Keystone XL would materially affect both the rate of economic growth and America’s competitiveness,” said Russ Girling, TransCanada’s president and chief executive officer.

Pourbaix says it would be a “tragedy” if Keystone isn’t approved because it would mean more oil moving by rail – a mode of transport he says is more dangerous.

With files from the Canadian Press.