Quebec Premier Francois Legault rejected on Tuesday the revival of the Energy East pipeline project, blocking plans to move western Canadian crude oil to eastern provinces. Legault told reporters he sees no path forward for the proposed pipeline, which would move more than 1 million barrels per day of crude oil from Alberta to New Brunswick.
The project would convert an existing natural gas pipeline to carry crude oil 2,900 miles from Hardisty, Alberta to Saint John, New Brunswick. Alberta Premier Danielle Smith had proposed reviving the project in January after the US threatened tariffs on Canadian crude imports, according to the CBC.
Irving Oil’s 320,000 barrel-per-day refinery in Saint John stands to benefit from the pipeline. The facility currently relies on US and foreign crude imports. Market sources say Irving remains skeptical about the project’s approval chances and funding prospects.
The pipeline proposal, estimated to cost $12 billion, would require extensive regulatory approvals and faces environmental opposition. Montreal residents have raised concerns about drinking water contamination. Indigenous groups also oppose the project.
Sponsored · Silver47 Exploration Inc.
TransCanada canceled the original Energy East proposal in 2017 after facing similar provincial opposition.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
