The energy giant TransCanada Corporation (NYSE:TRP), the company that proposes to build the controversial Keystone XL pipeline, is moving forward with the Energy East Pipeline project, bringing crude oil from Western Canada to Eastern Canadian refineries and export terminals, the company announced Thursday.
The $5 billion Energy East Pipeline could send between 500,000 to 850,000 barrels a day of Albertan crude oil. By comparison, TransCanada's proposed Keystone XL Pipeline, extending from Alberta, Canada, to the U.S. Gulf Coast, could deliver around 800,000 barrels of oil a day.
Many refineries in the U.S. Mid-West and Canada are at capacity and oil producers are looking towards opened refineries currently in the east as well as access to export terminals.
“I am very pleased with today’s announcement that Energy East is moving forward,” Alberta Premier Alison Redford, said in response to today’s announcement. “My government made a commitment to the project as part of our efforts to build new markets and get a fairer price for the oil resources Albertans own. This is truly a nation-building project that will diversify our economy and create new jobs here in Alberta and across the country.”
Last month, more than 100 people gathered in the Ottawa Public Library to discuss the proposed TransCanada plan, which entails converting a 55-year-old natural gas pipeline, according to ottawacitizen.com. TransCanada is one of the biggest energy development companies in North America. The Ottawa protesters said they lacked confidence in the safety of transporting oil, especially in light of the recent train derailment in Quebec, where an oil tanker exploded, killing more than 50 people.
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The announcement of the project comes at a time with TransCanada is seeking approval from the U.S. to start construction of the Keystone XL pipeline that will bring oil from Alberta's oilsands to its final destination to refineries in the U.S. Gulf Coast.