TransCanada Corp. (TSX: T.TRP, Stock Forum) said Tuesday it is seeking firm commitments from parties interested in transporting crude oil in a pipeline from Western Canada to Eastern Canadian markets.
The Energy East Pipeline project involves converting natural gas pipeline capacity in approximately 3,000 kilometres of TransCanada’s existing Canadian Mainline to crude oil service and constructing up to approximately 1,400 kilometres of new pipeline that could stretch as far as New Brunswick, TransCanada said.
Subject to the results of the open season, the project will have the capacity to transport as much as 850,000 barrels of crude oil per day, greatly enhancing producer access to markets in Eastern Canada, the company said in a press release.
TransCanada is seeking binding commitments for delivery points in Montreal, Quebec City, and Saint John, N.B.
TransCanada shares rose 0.55% to $49.56 Tuesday, leaving the company with a market cap of $35 billion, based on 706 million shares outstanding. The 52-week range is $50.08 and $41.47.