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 • 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.
CALGARY – Canada’s largest distributors of natural gas are digging their heels in against TransCanada Corp.’s plan to send Alberta crude to the East Coast, warning the scheme could result in higher costs for their customers in Ontario and Quebec.
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.
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.
“I don’t see how it’s going to benefit consumers. I just don’t see it.”
CALGARY — The Conservatives in Ottawa are staunch supporters, the New Democrats have called it a “win-win-win” and the premiers of Alberta and New Brunswick have loudly touted the benefits of an oil pipeline from west to east.
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.
Canada’s oil industry lacks shipping capacity. A commodity is worth less — or sometimes nothing — if you can’t get it out of the ground and off to market.
Simple economics can cut to the crux of the problem, but a foggy web of regulations and statutes stands in the way of the solution. The situation is keeping a lot of Calgary-based energy lawyers busy.