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Gaz Métro, Enbridge, Union Gas, even provinces may oppose Energy East pipeline

The Globe and Mail reports that opposition is growing to the TransCanada Energy East pipeline project.

The project involves a 4,600 kilometre 1.1 million barrels per day pipeline from Hardisty, Alberta to Saint John, New Brunswick, as well as a marine terminal in the St. Lawrence River to service export supertankers. The project would mean a 39 per cent increase in tar sands production from 2012 levels and would generate at least 32 million tonnes of greenhouse gas emissions from the crude oil production required to fill it.

The newspaper notes, “Both Quebec and Ontario governments plan to intervene in the National Energy Board review… Both provincial governments are being urged to defend their natural gas customers who say their interests are being sacrificed to western oil producers.”

“The consultancy Wood Mackenzie told the [Quebec regulatory body] Regie [de l’energie at hearings] last week that TransCanada’s plan [to convert their natural gas pipeline to oil] would create a 20-per-cent shortfall in gas pipeline capacity in eastern Ontario and Quebec markets.”

“Régie de l’énergie … will provide advice to the Liberal government on whether the project benefits the province. In the hearing, India-based IFFCO Canada Enterprises Ltd. warned it will cancel plans to build a $1.6-billion fertilizer plant in the province if it can’t secure a reasonably priced source of gas in light of TransCanada’s plan to transform its west-to-east mainline to carry crude. …The province’s biggest gas distributor, Gaz Métro, [also] plans to condemn the project as it is currently structured when it comes before the federal regulator for hearings. A representative of industrial gas users said the loss of pipeline capacity could undermine the competitiveness of central Canada’s energy-intensive industries.”

In addition, “Ontario’s Union Gas Ltd. and Enbridge Gas Distribution confirmed last week they continue to oppose the Energy East plan…” In November 2013, Enbridge and Union Gas announced pipeline expansion projects were needed in the Greater Toronto Area because the supply of natural gas from TransCanada’s mainline would be undermined by conversion into the Energy East pipeline. The Ontario Energy Board approved those projects in January 2014. Construction is expected to begin in late this year and finish by October 2015. The Council of Canadians argued against these projects because some of the new supply for these pipelines would come from fracked gas in the United States.

TransCanada is expected to file its formal application with the National Energy Board today.

In less than two weeks time, the Council of Canadians and local partners will launch a tour against the Energy East pipeline in Nova Scotia and New Brunswick. This follows our tour against the project in Ontario this past April 7-28. The Atlantic tour will include public forums in Halifax (October 26), Cornwallis (October 27), Saint John (October 29), Fredericton (November 4) and Edmundston (November 6).

For more on our campaign against the Energy East pipeline, please click here.