From the West to the East: Energy East

While Canada’s oil industry waits on decisions regarding TransCanada’s Keystone XL and Enbridge’s Northern Gateway pipeline, the former company has put together an alternative project: the Energy East pipeline.

A CAD$12 billion pipeline to connect oil sources in the west to demands in the east, Energy East would link Hardisty, Alberta to Quebec and New Brunswick, where Irving Oil ― Canada’s biggest refinery nearby  ― would partner with TransCanada to build a terminal so that Canadian oil can finally reach greater markets.

Unlike its predecessors, Energy East’s success rate is high. Where other pipelines needed to acquire land for its route, Energy East proposes a route that will build on existing infrastructure, adding another 1,400 km of pipe where TransCanada already claims most of the necessary rights-of-way. In addition, there’s wide support from Irving Oil to Stephen Harper, who either want to improve the refining industry or obtain energy security.

However, there are still hurdles to jump before pumping 1.1 million barrels of oil per day. Opposition is predicted to come from Ontario, who is concerned about its benefits, and Quebec, a province still shaken from a derailed train explosion this past July.

With the risk all pipelines bring, some wonder if it’s worth it. Analyzing the information, I’d say Energy East would be the most “worth it” of the three projects, as it has considerably less risk to the environment with a lot to gain.

A news clip discussing the Energy East Pipeline. 

Nevertheless, compared to other pipeline projects, Energy East’s future looks bright. Having secured crucial support, it’s taking firm steps toward official operation in 2017.