Energy East Project Terminated
Posted on: October 5, 2017
Dakota Access Pipeline
Construction of the Dakota Access pipline in North Dakota.

Trans-Canada Corporation has ended its bid to build the Energy East pipeline. Trans-Canada had pitched the 4,500 km./2796 mi. pipeline as an effective means for moving approximately 1.1 billion barrels of oil per day from landlocked Alberta and Saskatchewan to refineries and a marine terminal on the Atlantic coast in New Brunswick.

The company also announced it has ended its bid to build the Eastern Mainline Project. The project would have added new gas pipeline and compression facilities in Southern Ontario, where there is an extremely strong industrial and residential market for Trans-Canada products.

The October 5th statement from Trans-Canada says, “After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications.”

When the Energy East project was first announced in August of 2013 the “spread, ” or premium, for selling oil on the world market as opposed to the North American market stood at $3.42. On October 5th, 2017 the spread was nearly double that at $6.12. On the other hand, while production costs have been relatively stable, the price of oil has declined dramatically. The following chart lays out historical pricing, showing that the North American price has fallen by over half as Trans-Canada developed the Energy East project.

October, 2017 50.13 56.25 6.12
August, 2013 107.78 111.20 3.42

Previous National Energy Board hearings on the Trans-Canada application were voided in January after the hearing board was accused of bias.

Previous Infosuperior articles about pipeline construction:

Dec. 14, 2016 – “Right Through Here

January 20, 2017 – “The Path of Least Resistance

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