(Adds comment from Prime Minister, cost of project and expected
in-service date)
By Julie Gordon
VANCOUVER, June 16 (Reuters) - Canada's energy regulator on
Thursday officially launched its 21-month review of TransCanada
Corp's TRP.TO Energy East pipeline, which would carry crude
from Alberta's oil sands to refineries and export terminals in
Eastern Canada.
The National Energy Board, which has faced public criticism
over its reviews of major energy infrastructure projects, said
its review of the C$15.7 billion ($12.1 billion) pipeline will
be unique in that the general public will be given the
opportunity to provide input.
The review will also consider upstream gas emissions,
following new rules introduced by the ruling Liberals in January
on the grounds that public trust needed to be restored in the
process for assessing big energy projects.
Prime Minister Justin Trudeau, speaking to reporters on
Thursday, said his government had revamped the review process to
ensure that all voices were heard and that any decision would be
in the best interest of the entire country.
A final recommendation to the federal government, including
any proposed conditions on construction, is expected by March
2018, though the regulator said the legislated timeline could be
extended if needed.
Canada's resource minister has asked for six-months to
review the recommendation before a final federal decision. The
pipeline is expected to be in service by 2021.
"This marks an important milestone for the project and is a
culmination of TransCanada's efforts to actively communicate and
seek input since announcing Energy East three years ago,"
TransCanada said in a statement.
The 4,500-km Energy East pipeline is supported by Canada's
energy industry, which is eager to find new and more lucrative
markets for its crude, but opposed by many aboriginal and
environmental groups, who worry its construction will hasten the
development of Alberta's oil sands.
The province of Quebec has also expressed concerns over the
1.1 million barrel-per-day pipeline, leading TransCanada to
scrap plans for an export terminal on the St. Lawrence River and
to agree to a provincial environmental review.
The NEB said it will also concurrently review TransCanada's
279 km (173 mile) Eastern Mainline natural gas pipeline, noting
that the projects are connected and best served under a single
review.
Shares of TransCanada were up 0.24 percent at C$55.29 on the
Toronto Stock Exchange.
($1 = 1.2944 Canadian dollars)