(Newswire.net — August 07, 2013) Calgary, AB — TransCanada Corp. (TSX:TRP) (NYSE:TRP) takes on a new challenge as the Keystone XL battle rages on. TransCanada has proposed a 12 billion dollar pipeline project that will see oil sands crude transported from Alberta to New Brunswick by 2018.
The project recently proposed by the country’s second biggest pipeline operator is called the Energy East pipeline project. It is estimated the pipeline will transport over 1 million barrels per day to refineries in Eastern Canada.
However just like the Keystone XL project there are many who will try and block the project from moving forward. With growing concerns for the environment, environmental groups and native leaders have voiced their opposition.
The 4,400 kilometer (2,734 mile) line would be one of world’s longest pipelines. However to go forward the Energy East pipeline project will need support from six provincial governments including Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick.
Alberta and New Brunswick have already voiced their support for the project. The other provinces with the exception of Quebec will no doubt follow suit.
Political Science Professor Peter Stoett with the Concordia University Department of Political Science in Montreal believes that Quebec will oppose the project.
It is well known that due to environmental concerns Quebec has chosen to ignore the development of potentially rich shale gas reserves in the St. Lawrence Valley. One of the main concerns involves the controversial process of hydraulic fracturing, or fracking and the damage it may cause to the environment.
Another one of the reasons many feel Quebec will oppose the pipeline project is because Quebec produces most of its energy from hydro-electricity. A pipeline could endanger this water rich territory.
An additional factor that comes into play is the recent train catastrophe in Lac-Megantic. Many argue this is a reason for Quebec to support a pipeline system, however even though the extensive cleanup from the July 6, 2013 disaster is still in progress the view that the province will embrace a pipeline is doubtful.
In fact many argue that the benefits would outweigh the risks if Quebec were to approve the project. The main benefits would be that they would have access to Alberta crude which would be cheaper than imported crude. Along with that the project would create temporary high paying jobs. It is well known that once the project is completed the construction jobs will be gone.
As opposition mounts over projects aimed at expanding oilsands the future of this project may be in jeopardy just like the Keystone XL project.
Will Quebec perceive the pipeline as too risky? Will the Energy East pipeline be stuck in limbo awaiting approval like the Keystone XL project? Will the benefits outweigh the risks? These are questions that still remain unanswered.
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