Most Energy East pipeline oil will go overseas, new report claims

|By:, SA News Editor

TransCanada's (TRP) proposed Energy East pipeline won’t be the boon to eastern Canadian refineries that supporters claim because most of its oil would be bound for export markets, environmental groups argue in a new report.

The $12B project likely would use the lion’s share of its 1.1M bbl/day capacity to send unrefined oil sands crude to markets such as India, Europe and possibly the U.S., according to the report.

Supporters say Energy East will help ailing refineries in the East - reliant on high-cost crude from abroad - by connecting them with a stable, low-cost supply from western Canada; TRP has said the project’s economic benefits would be massive and has described it as a nation builder on a level with the Canadian Pacific Railway.