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TransCanada moves closer to eastern Canadian market

Gas infrastructure, oil pipeline part of company's domestic focus.

By Daniel J. Graeber

CALGARY, Alberta, Nov. 4 (UPI) -- Pipeline planner TransCanada Corp. said Tuesday it was moving ahead with a transit system in the east of Canada expected to bring shale gas to the market.

The company said it was moving ahead with plans for its Vaughan pipeline project, which it says is the next stage in the development of gas infrastructure in southern Ontario.

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"Over the past year, TransCanada has announced plans to invest almost $2 billion in facility enhancements to allow growing supplies of Marcellus gas to reach Ontario and Quebec markets," Russ Girling, president and chief executive officer of TransCanada, said in a statement. "These enhancements help minimize the duplication of infrastructure, reduce delivery costs and improve the diversification of gas supply to markets in Eastern Canada."

TransCanada in recent weeks has focused its strategies heavily on the eastern Canadian markets. Last week, the company announced it submitted a formal application for its Energy East pipeline project for eastern Canadian oil refineries.

The Energy East oil pipeline involves the construction of a new 930-mile segment and converting 1,800 miles of gas line for oil service. Like the gas system, the company said Energy East would make eastern Canadian refineries more competitive.

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The Natural Resources Defense Council said TransCanada can expect "considerable opposition and numerous hurdles" to Energy East.

Tar sands, the grade of crude oil designated for Energy East is controversial because it's carbon intensive to produce and can linger in the environment longer than conventional crude oil if spilled. Opponents of natural gas sourced from shale basins like Marcellus argue the drilling procedures and chemicals used in the process called fracking pose a significant threat to the environment.

With more than 60 years servicing the Canadian market, TransCanada said it's the leader in terms of responsible energy developments.

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