TransCanada Corp.’s Energy East pipeline could provide a smaller windfall to Alberta oil producers than when the conduit was first proposed, a report by Canada’s Finance Department shows.
The document outlines scenarios for how much Alberta’s oil could fetch in 2020 if Energy East is built. The pipeline would transport western crude to refineries in the east and to the Atlantic coast for export, netting producers higher prices linked to the global benchmark, Brent. That compares to prices fetched for most of the Alberta oil that’s currently piped to the U.S. Midwest and priced off the main North American grade, West Texas Intermediate, or carried by rail across the continent.
