TransCanada files project description for Eastern Mainline pipeline

TransCanada Corp. is accelerating efforts to extend its natural gas pipeline system in Ontario as it prepares to switch a portion of its cross-country mainline to carry crude oil.

TransCanada filed a project description with regulators yesterday for a new gas mainline project in eastern Canada. The pipeline will replace capacity being converted to carry crude for the Energy East oil pipeline.

Energy East pipeline

The company plans to transfer 3000 km (1864 miles) of under-utilised natural gas mainline system to the 1.1 million bpd Energy East pipeline that will ship crude from Alberta's oilsands to Saint John, New Brunswick.

Potential rise in gas prices?

Questions have been raised over whether gas customers in eastern Canada would see prices rise as a result of lower supply.

TransCanada Chief Executive Officer Russ Girling said plans for the new Eastern Mainline Project, filed with Canada's National Energy Board, were intended to alleviate those concerns.

"We are committed to ensuring that gas transmission capacity is available to meet the needs of customers and that the cost of serving those customers does not increase as a result of the transfer of a portion of the Canadian Mainline to Energy East," Girling said.

Eastern Mainline pipeline project

The proposed Eastern Mainline project will add up to 370 km of 36 in. pipe and compression facilities to the company's existing Canadian Mainline natural gas transmission system in southeastern Ontario.

It is intended to meet growing demand from customers in the provinces of Ontario and Quebec and ensure TransCanada can handle new supplies of gas from the US Northeast.

TransCanada and shippers are still discussing how much capacity will be required on the Eastern Mainline.

Edited from various sources by Elizabeth Corner

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