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Released September 11, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--TransCanada Corporation (NYSE:TRP) (Calgary, Alberta) has requested a 30-day suspension of its application for the Energy East crude oil pipeline in Canada after the country's National Energy Board (NEB) said it would toughen its review process. Industrial Info is tracking $32.48 billion in TransCanada projects, including the $13 billion Energy East Pipeline, which would to carry crude oil from Alberta's oil sands to the Atlantic coast for export.
Among the tougher evaluation criteria proposed by the NEB for the project are those regarding indirect greenhouse gas contributions. TransCanada has called the criteria "completely redundant and unnecessary," according to Reuters. Many consider oil sands production to be a "dirtier" form of oil production, as the carbon footprint is often larger than that of other forms of extraction.
The Energy East project includes construction of grassroot sections of pipeline, as well as the conversion of an existing natural gas pipeline along the proposed 2,800-mile route, to transport up to 1.1 million barrels per day (BBL/d) of crude oil. For more information, see Industrial Info's project reports on the grassroot sections in Alberta, Ontario and Quebec. The pipeline would end at a proposed marine terminal in Saint John, New Brunswick, which would have twenty-two 600,000-barrels tanks and pump packages with a maximum injection/takeaway flow rate of 3.1 million BBL/d. For more information, see Industrial Info's project report.
In a press release, TransCanada Chief Executive Officer Russ Girling said, "Apart from Energy East, we will continue to advance our $24 billion near-term capital program in addition to our longer-term opportunities."
Among these projects is TransCanada's controversial Keystone XL pipeline, which according to some media sources, could make the Energy East Pipeline somewhat redundant, as it also targets moving oil from Alberta's oil sands to a coastal location--this time to the U.S. Gulf Coast in Texas, where it could be refined or potentially exported. The Keystone XL project was initially struck down under the Obama administration, but was revived under an executive order from President Donald Trump. In response to disruptions in the energy sector caused by Hurricane Harvey, TransCanada recently extended the open season on remaining volumes on the Keystone system, which was launched July 27, to October 26.
However, the Keystone XL Pipeline also faces problems. The pipeline still needs approval from regulators in Nebraska. The state's Public Service Commission (PSC) has until November 13 to decide on the proposed route through the state, which is being challenged by many landowners. The decision of the PSC could send TransCanada back to the drawing board to decide an alternative route, which could potentially affect pipeline's path in other states. For more information, see Industrial Info's project report on the Nebraska portion of the Keystone XL.
While the decision could affect the company's further development of the Energy East Pipeline, it may not come in time for TransCanada, which filed for an extension to the deadline for filing Energy East updates to October 27.
TransCanada also asked for a 30-day suspension on its application for its Eastern Mainline natural gas pipeline. The 173-mile pipeline would transport up to 250 million cubic feet per day of natural gas within Ontario. For more information, see Industrial Info's project report.
TransCanada has some tough decisions to make in the coming weeks, which could impact the company's bottom line and share prices. In the press release announcing the suspension of the applications, TransCanada said, "Should TransCanada decide not to proceed with the projects after a thorough review of the impact of the NEB's amendments, the carrying value of its investment in the projects as well as its ability to recover development costs incurred to date would be negatively impacted."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Among the tougher evaluation criteria proposed by the NEB for the project are those regarding indirect greenhouse gas contributions. TransCanada has called the criteria "completely redundant and unnecessary," according to Reuters. Many consider oil sands production to be a "dirtier" form of oil production, as the carbon footprint is often larger than that of other forms of extraction.
The Energy East project includes construction of grassroot sections of pipeline, as well as the conversion of an existing natural gas pipeline along the proposed 2,800-mile route, to transport up to 1.1 million barrels per day (BBL/d) of crude oil. For more information, see Industrial Info's project reports on the grassroot sections in Alberta, Ontario and Quebec. The pipeline would end at a proposed marine terminal in Saint John, New Brunswick, which would have twenty-two 600,000-barrels tanks and pump packages with a maximum injection/takeaway flow rate of 3.1 million BBL/d. For more information, see Industrial Info's project report.
In a press release, TransCanada Chief Executive Officer Russ Girling said, "Apart from Energy East, we will continue to advance our $24 billion near-term capital program in addition to our longer-term opportunities."
Among these projects is TransCanada's controversial Keystone XL pipeline, which according to some media sources, could make the Energy East Pipeline somewhat redundant, as it also targets moving oil from Alberta's oil sands to a coastal location--this time to the U.S. Gulf Coast in Texas, where it could be refined or potentially exported. The Keystone XL project was initially struck down under the Obama administration, but was revived under an executive order from President Donald Trump. In response to disruptions in the energy sector caused by Hurricane Harvey, TransCanada recently extended the open season on remaining volumes on the Keystone system, which was launched July 27, to October 26.
However, the Keystone XL Pipeline also faces problems. The pipeline still needs approval from regulators in Nebraska. The state's Public Service Commission (PSC) has until November 13 to decide on the proposed route through the state, which is being challenged by many landowners. The decision of the PSC could send TransCanada back to the drawing board to decide an alternative route, which could potentially affect pipeline's path in other states. For more information, see Industrial Info's project report on the Nebraska portion of the Keystone XL.
While the decision could affect the company's further development of the Energy East Pipeline, it may not come in time for TransCanada, which filed for an extension to the deadline for filing Energy East updates to October 27.
TransCanada also asked for a 30-day suspension on its application for its Eastern Mainline natural gas pipeline. The 173-mile pipeline would transport up to 250 million cubic feet per day of natural gas within Ontario. For more information, see Industrial Info's project report.
TransCanada has some tough decisions to make in the coming weeks, which could impact the company's bottom line and share prices. In the press release announcing the suspension of the applications, TransCanada said, "Should TransCanada decide not to proceed with the projects after a thorough review of the impact of the NEB's amendments, the carrying value of its investment in the projects as well as its ability to recover development costs incurred to date would be negatively impacted."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
