TransCanada will hold a binding open season to obtain firm commitments from interested parties for a pipeline to transport crude oil from Western Canada to Eastern Canadian markets.
The Energy East Pipeline project involves converting natural gas pipeline capacity in approximately 3,000 km of TransCanada’s existing Canadian Mainline to crude oil service and constructing up to approximately 1,400 km of new pipeline. Subject to the results of the open season, the project will have the capacity to transport as much as 850,000 bbl/d of crude oil, greatly enhancing producer access to markets in Eastern Canada. The Energy East Pipeline could eliminate Canada’s reliance on higher priced crude oil currently being imported.
The open season will begin on 15 April 2013 and will close on 17 June 2013. Following the completion of the open season, if it is successful, TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate the required facilities, with a potential in-service date in late 2017.