Tag Archives: East-West Corridor

More options for crude export in Canada may help Keystone XL’s case in U.S., consultant says

12 Apr

By Dave Cooper, Edmonton Journal April 9, 2013

EDMONTON – The push for tougher greenhouse-gas rules in Canada and plans for a new crude pipeline to Atlantic Canada may help make the case for the Keystone XL pipeline, says a Washington-based energy consultant.

In a research note, Robert Johnston of the Eurasia Group, said he expects approval of the northern leg of the Keystone XL between Alberta and Nebraska by late summer, despite the recent spill of Alberta heavy crude in Arkansas, which has been highlighted by critics of the proposed Keystone line.

Johnston said the bitumen spill on the ExxonMobil Pegasus pipeline “created significant headline risk and could generate further delays” for U.S. federal approval. But this is balanced by recent proposals for stricter greenhouse-gas emission rules in Canada which are being pushed by the Alberta government, and further progress on TransCanada’s proposed “Energy East” pipeline which will deliver oilsands output to Atlantic Canada.

Johnston noted the Arkansas spill “has driven a strong response by the environmental community in Washington, which is virtually united in opposing Keystone XL.” He adds the spill “is being used to re-engage the administration following public comments by President (Barack) Obama in San Francisco last week that were interpreted as more favourable for Keystone XL approval.”

Johnston notes the Keystone will have a number of new “smart” systems to detect and respond to leaks, and will be built with better materials than those used in the 60-year-old Pegasus pipeline.

And the push for an eastern outlet, with TransCanada’s plans to convert one of its underused natural gas pipelines to carry crude and extend the line from Montreal to Saint John, N.B., with its large Irving refinery, has shown there is another option to Keystone XL.

That, in combination with Enbridge’s plans to reverse its existing line to Montreal so western light crude can reach the Suncor refinery there, will weaken the environmentalists’ argument that stopping Keystone will halt oilsands development.

“The Keystone XL alternatives are crucial as they underpin the argument that the GHG (greenhouse gas) impact of KXL itself will be neutral, as the oilsands will be produced and brought to market with or without the KXL project,” said Johnston.

However, using rail or the TransCanada line to the east are still not the best choices for many producers, since those options will be more expensive than using the Keystone line.

Eurasia notes the 45-day comment period on the draft of the U.S. environmental impact statement is set to expire on April 22 unless it is extended. If it expires, it will take an additional one to two months to prepare the final statement, which would then have to undergo an inter-agency review of up to 90 days.

“Sources contacted by Eurasia Group are divided over whether the White House would use most or all of that time. On balance, while approval remains highly likely, timing now looks more likely to be late summer versus late spring,” said the report.

Republished from the Edmonton Journal: http://www.edmontonjournal.com/business/energy-resources/More+options+crude+export+Canada+help/8218564/story.html

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TransCanada Pipeline Project To Bring Crude Oil To Eastern Canada Welcomed By Government

2 Apr

Reuters – April 2nd, 2013

Transcanada Pipeline

This Sept. 19, 2011 aerial photo shows a tar sands mine facility near Fort McMurray, in Alberta, Canada. (AP Photo/The Canadian Press, Jeff McIntosh)

TORONTO  – The Canadian government said on Tuesday it was encouraged by TransCanada Corp’s announcement that it plans to move forward on a plan to convert and build pipeline infrastructure to transport crude oil from Western Canada to eastern Canadian markets.

The project could potentially eliminate Canada’s reliance on the higher priced crude oil that it currently imports to supply East Coast refineries.

Calgary, Alberta-based TransCanada, on Tuesday said its Energy East Pipeline would have the capacity to transport as much as 850,000 barrels of crude oil per day.

“Our government strongly supports initiatives to construct energy infrastructure to transport western Canadian oil to the east,” said Canada’s Minister of Natural Resources Joe Oliver, during a press conference. “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.”

Republished from the Huffington Post: http://www.huffingtonpost.com/2013/04/02/transcanada-pipeline-energy-east_n_2998956.html