• 11 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 13 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 15 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 16 hours Schlumberger Warns Of Moderating Investment In North America
  • 17 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 18 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 20 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 21 hours New Video Game Targets Oil Infrastructure
  • 23 hours Shell Restarts Bonny Light Exports
  • 24 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Alt Text

China Takes Aim At The Petrodollar

In a potentially disrupting move…

Alt Text

Russia And China Continue To Boost Oil Ties

The Russia-China alliance is strengthening…

TransCanada Announces Decision for West-East Oil Pipeline in Canada

TransCanada Announces Decision for West-East Oil Pipeline in Canada

The Canadian energy company TransCanada Corp announced today, Thursday, its decision to move forward with the Energy East Pipeline, a 2,740-mile project that would transit between 500,000 and 850,000 barrels of oil per day (bpd) from western to eastern Canada. Some longer-term estimates see the possibility of eventually ramping volumes up to 1.1 million bpd.

Oil arriving through 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. Conversion of the existing Canadian Mainline natural gas pipeline for carriage of crude oil would account for slightly over two-thirds the projected length. The remainder would be new construction. Cost estimates range up to $12 billion, excluding the transfer value of the Canadian Mainline.

Related article: Canada Threatens U.S. with Oil Trains if Keystone XL Not Built

The announcement follows by three weeks the signature by Alberta province of a memorandum of understanding to pay up to $5 billion in tolls for transportation of its crude oil to eastern Canada, if a pipeline is built. The proposal still requires regulatory approval, but the conditions in favor of this have been lining themselves up for some time.

The company anticipates beginning the regulatory process next year, with first oil flowing to Montreal and the Quebec City region by 2017, and to Saint John, New Brunswick, by 2018. TransCanada and IrvingOil have formed a joint venture, to construct, own, and operate a new deep water marine terminal at Canaport in Saint John.

Company officials say that construction of the Energy East Pipeline would not exclude use of the Keystone XL Pipeline if the latter is ever built. Canada's oil sands are the third-largest crude deposit in the world, estimated at 170 billion barrels.

U.S. President Barack Obama's November 2011 postponement of a decision on the construction of the Keystone XL Pipeline produced political and economic momentum in Canada to seek other markets.
Keystone would feed multiple US refineries in the Midwest and Texas Gulf Coast with product from Alberta's Athabasca oil sands. However, the decision on Keystone is still in limbo and there are in addition a number of court cases in the U.S. that contest different aspects of it.

Related article: Keystone XL's Goose is Cooked

Canadian companies have also explored possibilities of building a pipeline from there westwards to British Columbia's Pacific Ocean coast for export to Asia. At present, Canadian oil is sold to U.S.
companies at about $30 per barrel below world market prices, simply because there are no export pipelines from Canada to take the oil anywhere else.

TransCanada is one of the largest energy companies in North America.

It is developing one of the continent's largest oil delivery systems and already operates a natural gas pipeline network of more than 42,500 miles with over 400 billion cubic feet of storage capacity.

By. Robert M. Cutler of Oilprice.com




Back to homepage


Leave a comment
  • art wegweiser on September 18 2013 said:
    If the Canadians are stupid and greedy enough to foul their own territory with the filthiest oil on Earth, fine. Keep this crap off US soil. China will not mind whatever the source.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News