Canada PoliticsPlans for West-East pipeline ramp up, federal government pledges support
A West to East pipeline is closer to becoming a reality.
On Tuesday, TransCanada Corporation announced next steps in their due-diligence for a proposed 4,400-kilometre pipeline that could carry between 500,000 and 850,000 barrels of crude oil per day from Alberta and Saskatchewan to refineries in Eastern Canada.
TransCanada will hold a binding open season from April 15 to June 17, 2013 to obtain firm long-term commitments from interested parties for the pipeline. This is the next step in the process in determining the commercial viability of converting more of the capacity of our Canadian Mainline from natural gas to crude oil service, in order to supply Eastern Canadian markets with oil produced in the West. At this point, we know that this project is technically and economically feasible.
The Eastern Oil Pipeline Project (Energy East Pipeline) involves three major components: pipeline conversion, the construction of new pipeline and the construction of new pipeline facilities. Energy East will make use of an existing natural gas pipeline and will convert the pipeline to oil service. New sections of pipe will also need to be constructed in Alberta, Saskatchewan, Eastern Ontario, Québec and New Brunswick to link up with the newly converted pipe. Lastly, associated facilities like pump stations, tank terminals and marine facilities will be constructed in order to successfully move the crude oil from Alberta to New Brunswick and beyond.
Natural Resources Minister Joe Oliver subsequently held a press conference, on Parliament Hill, to offer the government's explicit support.
"Our government strongly supports initiatives to construct energy infrastructure to transport western Canadian oil to the east," Oliver said noting that the project would require an environmental review.
"It is in the national interest to replace higher-cost foreign crude with lower-cost Canadian crude to consumers and refineries in Quebec and Atlantic Canada.
"There's also an issue of energy dependence and national security. This particular project — assuming that it achieves regulatory approval — will lessen or perhaps eliminate dependency on higher cost...foreign oil."
Reporters were quick to chide Oliver for holding this press conference just days after a massive pipeline rupture that leaked Canadian oil onto the streets of an Arkansas suburb.
[ Related: Is thick crude oil from Canadian tar sands behind Arkansas pipeline rupture? ]
But the minister was resolute.
"Let's put this in perspective and proceed in a bit of a logical manner here," Oliver said.
"A very old — a more than 60 year old — had a leak. It happened to be carrying Canadian crude. The fact that it was carrying Canadian crude did not have any impact on the leak. We know from science that Canadian crude is not more corrosive than light crude. There was an accident there which was really regrettable.
"As we know, the safety record for pipelines is 99.99945 per cent."
Despite risks of pipeline ruptures, recent survey results suggest that Canadians actually support a trans-Canada pipeline.
An Abacus Data poll, released last month, suggested that 78 per cent of those surveyed, and who had an opinion about the pipeline, either strongly or somewhat support the idea.
[ Related: Canadians support the idea of a cross-Canada oil pipeline ]
By comparison to previous Abacus surveys, 53 per cent support the Keystone XL pipeline which would transport Alberta oil to the Gulf of Mexico, while 49 per cent support the proposed Northern Gateway pipeline through British Columbia.
(Photo courtesy of the Canadian Press)
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