CALGARY – TransCanada Corp. has not officially committed to sending Alberta oil east using a portion of its beleaguered mainline natural gas system.
But the Calgary-based pipeline and power giant has begun laying the groundwork for such a conversion, telling would-be gas shippers this week to expect less space for gas molecules on the cross-Canada system in the future as plans to deliver up to one million barrels of Western Canadian crude oil to Quebec refineries and, potentially, as far as the East Coast, gather steam.
CALGARY — TransCanada Corp.’s bid to funnel Alberta crude oil east to Quebec refineries and potentially to Canada’s busiest oil port opens the door to new markets for oil sands producers beyond those promised by the long-delayed Keystone XL project.
CALGARY • Canada’s National Energy Board is poised to approve or reject a plan by TransCanada Corp. to rejig the way it charges producers to ship gas from Alberta to Ontario, a decision that will have broad implications for the future of an asset that has served as an industrial backbone for more than 50 years.
CALGARY — Eastern gas distributors are crying foul over service changes proposed by TransCanada Corp. to its cross-country natural gas mainline that would limit shippers’ ability to renew delivery contracts, as the pipeline and power giant looks to switch portions of the long-haul system to carry oil.
The National Energy Board ended an epic battle Wednesday over the future of TransCanada Corp.’s natural gas Mainline by refusing to allow it to be subsidized by short-haul routes and by adjusting long-term tolls to a lower level to make it more attractive to shippers.
It’s now time to turn the page for Canada’s 50-year-old backbone energy transporation system and step up efforts to put it to even better use — by turning parts of it into an oil pipeline and open a new market for Alberta’s oil in Canada’s East.
HALIFAX — A proposal to ship oil from Alberta to Eastern Canadian markets is drawing support from a growing number of premiers who say it could help stimulate the economy while serving as the foundation for a national energy strategy.
Alberta Premier Alison Redford said she was delighted Friday to see her provincial counterparts back the idea following a discussion she had with Quebec Premier Pauline Marois the night before.
TransCanada Corp. has asked for firm commitments from shippers as it plans to convert a portion of the Mainline natural gas pipeline into an oil artery.
The project will require 1,400-kilometre of additional construction and could carry as much as 850,000 barrels per day of oil from Western Canada to Eastern Canada.
The project has the potential to reach Irving Oil’s refinery in Saint John, N.B., and provide another way for landlocked Alberta oil to reach new markets.
“I’m very optimistic we will get the contractual support we will need and what I would hope is the pipeline goes all the way to Saint Joh.” – Russ Girling
Crude from Alberta’s oil sands sells at a 30% discount to its U.S. counterpart. TransCanada Corp. Chief Executive Officer Russ Girling plans to narrow that gap whether or not his Keystone XL pipeline to the Gulf of Mexico wins approval from the Obama administration.
OTTAWA — The federal government is firming up its support of two projects that would see oil from Alberta piped to Atlantic Canada.
Natural Resources Minister Joe Oliver says he has given tentative approval of one proposal to industry giant Irving Oil.
“I met with Arthur Irving (Irving Oil’s CEO) and expressed the support of the government of Canada, in principle, for this initiative,” Oliver said in an interview with The Canadian Press.