Energy East Seen as Higher-Cost Alternative to Keystone
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TransCanada Corp.’s proposed Energy East oil pipeline is only worth building as an alternative to the Keystone XL project because it offers fewer cost advantages and there’s not enough demand for both, Wood Mackenzie said.
Producers shipping oil-sands crude to Canada’s Atlantic Coast on Energy East will likely have to pay an extra $2 or $3 a barrel, and with both pipelines operating, there would be excess capacity in coming years, Michael Wojciechowski, manager of Americas refining and chemicals at the energy research firm, said in a briefing today in Calgary.