26 July 2013 16:05 [Source: ICIS news]
TORONTO (ICIS)--Canadian energy infrastructure major TransCanada said on Friday that its proposed 850,000 bbl/day pipeline project to ship oil from Canada’s west to refineries in the east could start up in late 2017.
TransCanada said that it has begun talks with aboriginal people, whose land the pipeline would cross, and has started fieldwork on initial design and planning.
"If we determine that there is sufficient commercial support for the project, we will apply for regulatory approval to build and operate the facilities, with a potential in-service date of late 2017," TransCanada said in an update.
The company announced the project – known as Energy East Pipeline – in April. It involves converting an existing 3,000km (1,870 miles) of natural gas pipeline capacity to crude oil service, and constructing about 1,400km of new pipeline.
Shipping crude oil via pipeline, rather than rail, gained in public support in Canada following a catastrophe earlier this month at a Quebec town, where a train carrying oil to a refinery derailed and exploded.
Energy East Pipeline would, if realised, lessen Canada's dependence on US Midwest refineries as the main export market for oil from western Canada.
In related news on Friday, TransCanada said that its long-delayed Keystone XL pipeline project could be in service about two years after receiving final US approval. Keystone XL would enable Canadian oil to reach US Gulf Coast refineries.
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