Energy East pipeline price tag goes up

On a quarterly conference call last week, TransCanada Corp. CEO Russ Girling said that costs for the Energy East pipeline project are likely to increase from current estimates. The likely increase is due to adjusting the pipeline’s route following feedback from communities, governments and indigenous peoples as well as higher construction costs.

On a quarterly conference call last week, TransCanada Corp. CEO Russ Girling said that costs for the Energy East pipeline project are likely to increase from current estimates. The likely increase is due to adjusting the pipeline’s route following feedback from communities, governments and indigenous peoples as well as higher construction costs.

TransCanada had been estimating the pipeline would cost CAN$12 billion.

TransCanada did not provide an updated cost estimate or give any clarity on how much the price tag will rise.

Energy East was already going to be one of the costliest infrastructure projects in Canadian history.

For two thirds of the way, TransCanada aims to convert an underused natural gas pipeline and then build new pipeline through Quebec and New Brunswick.

According to TransCanada’s quarterly report, the company has already spent CAN$700 million on Energy East – and regulatory hearings have not even started.

New First Nations agreement

In other Energy East news, a new agreement signed by TransCanada with a group representing Ontario First Nations has raised concerns that the oil and gas industry is trying to buy social license in order to build the pipeline.

Grand Council Treaty 3 — representing 21 First Nations across Ontario — entered into a Communication Engagement and Funding Agreement (CEFA) with TransCanada, in which the company would pay CAN$717 500 over 2015 and 2016 for communications and engagement relating to Energy East.

Grand Chief Warren White (Ogichidaa) of Ontario's Anishinaabe Nation said in a news release that it doesn't mean Council is on board with the pipeline project.

"We aren't agreeing to the project at this stage," White said in a news release.

"We are simply sharing information and listening to the people. We are entering into this agreement for the people and we will listen to the people and the elders in the four areas of our nation."

TransCanada had been estimating the pipeline would cost CAN$12 billion.

TransCanada did not provide an updated cost estimate or give any clarity on how much the price tag will rise.

Energy East was already going to be one of the costliest infrastructure projects in Canadian history.

For two thirds of the way, TransCanada aims to convert an underused natural gas pipeline and then build new pipeline through Quebec and New Brunswick.

According to TransCanada’s quarterly report, the company has already spent CAN$700 million on Energy East – and regulatory hearings have not even started.

New First Nations agreement

In other Energy East news, a new agreement signed by TransCanada with a group representing Ontario First Nations has raised concerns that the oil and gas industry is trying to buy social license in order to build the pipeline.

Grand Council Treaty 3 — representing 21 First Nations across Ontario — entered into a Communication Engagement and Funding Agreement (CEFA) with TransCanada, in which the company would pay CAN$717 500 over 2015 and 2016 for communications and engagement relating to Energy East.

Grand Chief Warren White (Ogichidaa) of Ontario's Anishinaabe Nation said in a news release that it doesn't mean Council is on board with the pipeline project.

"We aren't agreeing to the project at this stage," White said in a news release.

"We are simply sharing information and listening to the people. We are entering into this agreement for the people and we will listen to the people and the elders in the four areas of our nation."

Edited from various sources by Elizabeth Corner

Sources: Global NewsCTV NewsNational Observer

Published on 03/08/2015


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