TransCanada nixes export terminal in Quebec

Quebec will no longer host an oil export terminal for TransCanada’s controversial Energy East Pipeline, the Calgary-based company announced Thursday.

Six months after abandoning a proposal to build a terminal northeast of Quebec City, TransCanada said it would amend its proposal to the National Energy Board to include a new route for the pipeline.

The company made the decision after “conducting thorough studies and consulting with many local communities,” Energy East president John Soini said in an interview.

TransCanada plans to build a 4,600-kilometre pipeline to transport 1.1 million barrels of Alberta crude as far east as Saint John, N.B., home to Irving Oil’s massive refinery and the site of the only planned export terminal for the project.

The pipeline is unpopular in Quebec and served as political fodder during the recent federal election campaign for the anti-Energy East Bloc Québécois.

It said the project brings only risks to the province with none of the benefits.

While ditching plans to export crude from Quebec, TransCanada said it will ensure refineries in Montreal and Quebec City are still able to access domestic crude from Energy East.

The $12-billion project is scheduled to be completed by 2020.

Soini said the pipeline will create 500 long-term jobs and add $1.19 billion to the Quebec government’s coffers during the exploitation phase.

But Premier Philippe Couillard said the company has yet to demonstrate the economic benefits for his province.

Couillard reiterated Quebec cannot just serve as a passageway for TransCanada.

The company is expected to file detailed plans for Energy East by the end of the year.