CALGARY, ALBERTA--(Marketwired - Dec. 17, 2015) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) announced today it has filed an amendment to its existing application with the National Energy Board (NEB) that adjusts the proposed route, scope and capital cost of the Energy East pipeline project based on extensive landowner, environmental, community and customer input.
The amended application includes route and scope changes that come in direct response to efforts to avoid sensitive environmental areas, while confirming this project will safely create economic benefits and energy security through job creation and local community tax revenue across Canada.
"This amended filing has been shaped by direct, on-the-ground input from Canadians across the country," said Russ Girling, TransCanada's president and chief executive officer. "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."
Responding to the input of local communities along with efforts by TransCanada to better optimize environmentally-sound pipeline routing resulted in close to 700 route changes to the project. Changes to the project schedule and scope have contributed to a new projected capital cost of $15.7 billion, excluding the transfer of Canadian Mainline natural gas assets.
Pipelines remain the safest and least greenhouse gas intensive way of transporting crude oil to market. The Energy East Pipeline will have the capacity to displace the equivalent of 1,570 rail cars of crude oil per day to Eastern Canada.
A recent study supports this point by concluding that Energy East would change the mode of transport of crude oil currently moving on rail to pipeline. (Navius Research Report to the Ontario Energy Board, August 2015)
The changes to the scope of the Energy East project have resulted in an increase in the expected employment opportunities and economic benefits of the project. An updated Conference Board of Canada study indicates that the project will continue to have significant and lasting economic benefits for Canadians through strong job growth, GDP growth and increased tax revenues to build roads, schools, hospitals and bridges.
Throughout Canada, Energy East is expected to create an average of 14,000 annual direct and indirect full time jobs during the nine-year development and construction of the pipeline. In addition, the project will support the creation of an additional 3,300 annual direct and indirect full time jobs over for the first 20 years of operations.
According to the study, the development and construction phase of the project is expected to generate $3.8 billion in tax revenues for provincial and federal governments. The operations phase will result in $6.5 billion in additional tax revenue. Energy East will generate an estimated $16.8 billion in additional GDP for the Canadian economy during the development and construction phase and $38.7 billion in the first 20 years of operation.
The amended filing also includes details of the agreement between TransCanada and Eastern Canada Local Gas Distribution Companies (LDCs) that resolved the LDCs' concerns with Energy East. The agreement ensures that Energy East and the Eastern Mainline Project will provide gas consumers in Eastern Canada with sufficient natural gas capacity and reduced transmission costs.
When expected operations of the pipeline begin in 2020, the 1.1 million barrel per day Energy East project will dramatically reduce the need for Eastern Canadian refineries to continue to import hundreds of thousands of barrels of higher-priced foreign oil, keeping jobs and investment here in Canada.
More information on the project benefits can be found here.
With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 68,000 kilometres (42,100 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,500 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest liquids delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TransCanada security holders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the Quarterly Report to Shareholders dated November 2, 2015 and 2014 Annual Report filed under TransCanada's profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.