TransCanada launches open season for eastern Canada natgas capacity
29 November 2013 15:20 [Source: ICIS news]
TORONTO (ICIS)--Canada-headquartered energy infrastructure major TransCanada on Friday launched an open season for shipper commitments on possible natural gas pipeline expansion projects in eastern Canada.
TransCanada said that, depending on shipper interest, it may build additional pipeline capacity and compression facilities to supply customers in eastern Canada. It did not disclose capacity or financial details. The open season will end on 15 January.
TransCanada recently put forward plans for a major 1.1m bbl/day west-to-east oil pipeline project to supply refineries in Quebec and New Brunswick provinces with oil from Alberta, and to export the oil from a planned deep water marine terminal at Saint John, New Brunswick.
However, that project - known as "Energy East" - involves the conversion of portions of existing gas pipeline capacity to oil, raising concerns that a planned nitrogen fertilizer project in Quebec and other gas consumers in eastern Canada could face supply shortages and higher prices.
TransCanada added that the open season for additional natural gas pipeline capacity in eastern Canada would allow it to address those concerns.
Energy East has support from Canada's government as it would help lessen Canada's dependence on US Midwest refineries as a big market for its oil - especially as it still remains uncertain whether or when the US will approve TransCanada's long-delayed Keystone XL oil pipeline which would enable Canadian oil to reach US Gulf Coast refineries.By: Stefan Baumgarten+1 713 525 2653
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