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TransCanada announces major contract for Energy East pipeline

TransCanada announces major contract for Energy East pipeline 

Project is controversial, with Montreal and nearby mayors opposed on environmental grounds

TransCanada's proposed pipeline project would carry 1.1 million barrels a day from Alberta through Quebec to an export terminal in Saint John.

TransCanada’s proposed pipeline project would carry 1.1 million barrels a day from Alberta through Quebec to an export terminal in Saint John. (Canadian Press)

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The Calgary-based company planning to build the Energy East pipeline says it has signed a provisional multimillion-dollar order for the construction of 22 modular enclosures along the pipeline route.

TransCanada Corp. officials say their deal with ABB Canada would create 120 direct jobs in Quebec and a further 90 spinoff jobs outside the greater Montreal area.

But there’s a catch: the jobs would materialize only if regulators approve the controversial pipeline project.

The proposal has run into major opposition in Quebec, with the mayors of Montreal and dozens of surrounding municipalities saying the project’s environmental risks outweigh its economic benefits.

The $15.7-billion Energy East pipeline would carry a million barrels a day of western crude as far east as Saint John to serve domestic refineries and international customers.

The project would include the existing TransCanada pipeline as far east as Montreal and would require the construction of 1,600 kilometres of new pipeline, including a long section that would run through Quebec to the south coast of New Brunswick.

Construction possible by 2018

If the federal government and the National Energy Board give their OK, TransCanada has said it could begin construction by 2018. The pipeline would be ready for use by 2020.

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