TransCanada has filed an amended route application with the National Energy Board (NEB) for its Energy East pipeline project that raises the projected cost by nearly C$4bn ($2.8bn).
The new application makes nearly 700 changes to the route to address environmental concerns which will increase the projected cost of the project capital cost to C$15.7bn ($11.3bn).
The new projected capital cost excludes the transfer of Canadian Mainline natural gas assets.
“We are listening and acting on what we have heard.”
TransCanada president and CEO Russ Girling said: “The thousands of Canadians we have met with since 2012 understand the importance and significance of what this project means to our country’s energy security and economic prosperity.
“However, Canadians also want assurances this project does not come at the expense of safety and the environment – and this application shows we can do that. We are listening and acting on what we have heard.”
In its amended proposal the company has announced to build a marine export terminal in Saint John, New Brunswick which was the main component for increasing the cost.
As per the amended plan, the export terminal would have a capacity to store 13 million barrels compared to 7.6 million barrels in the previous plan.
TransCanada’s pipeline claims to remove 1,570 rail cars of crude oil per day to Eastern Canada and is expected to create an average of 14,000 jobs during development and construction for nine years.
For the first 20 years of operations, the project is expected to create an additional 3,300 annual direct and indirect full time jobs.
A study conducted by Navius Research in August 2015 revealed that the Energy East pipeline will generate an estimated $16.8bn in additional GDP for the Canadian economy during the development and construction phase.
Another $38.7bn is expected in the first 20 years of operation.
The pipeline is expected to begin operations in 2020.
The proposed 4,600km Energy East pipeline would deliver oil from Western Canada to Eastern Canada, from receipt points in Alberta and Saskatchewan to refineries and port terminals in New Brunswick and possibly Quebec.