OTTAWA – TransCanada unveiled plans Tuesday to build a pipeline to ship oil from Canada’s western tar sands to refineries in eastern regions reliant on higher-priced oil imports.
The 4,400-km Eastern Oil Pipeline would be the first connecting producers in the west who are eager to tap into new markets with consumers in Canada’s most-populated cities and industrial heartland in the east.
The conduit would be capable of transporting as many as 850,000 barrels of crude per day to refineries in Montreal and Quebec City, as well as the Atlantic port city of Saint John in New Brunswick, TransCanada said.
Those refineries currently process about 600,000 barrels of imported oil per day to meet regional energy needs, paying global market rates for foreign supplies of crude oil.
Tar sands output, meanwhile, is heavily discounted because most existing pipelines from landlocked Alberta’s tar sands lead to markets in the United States that are increasingly facing a supply glut.