Major West-to-East Oil Pipeline Proposed in Canada

August 2, 2013

TransCanada announced plans Thursday for the construction of a $12 billion pipeline to carry oil from the Alberta oil sands to the Atlantic seaboard, Global Energy World has reported.

The company said it was going ahead with the Energy East Pipeline project, which could move 1.1 million barrels of oil a day from western Canada to eastern markets, after hearing from potential customers.

It said it had already concluded long-term contracts with producers and refiners to move about 900,000 barrels a day, though the project still requires regulatory approval.

"This is an historic opportunity to connect the oil resources of western Canada to the consumers of eastern Canada, creating jobs, tax revenue and energy security for all Canadians for decades to come," TransCanada CEO Russ Girling said in a statement.

The project has aroused stiff opposition from Quebec, and environmental groups have vowed to fight it.

It is supposed to be completed by 2018, and the company indicated it would approach Canadian authorities for approval by the end of the year.

With around 170 billion barrels of oil in the ground, Canada has the world's third largest oil reserves after Saudi Arabia and Venezuela.

However, exports have been limited by a shortage of pipeline capacity.

Copyright, Global Energy Watch, 2013.