(Recasts with new lead about Energy East, quotes from
TransCanada about federal regulatory review, White House
comment, updates stock action)
By Mike De Souza and Nia Williams
CALGARY, Nov 3 (Reuters) - TransCanada Corp TRP.TO is
pushing ahead to develop Energy East, an all-Canadian
alternative pipeline project to its struggling U.S. Keystone XL
pipeline, and will soon reveal the location of a new export
terminal.
The Calgary-based company said on Tuesday it was "very
close" to announcing an alternate location for the crude export
terminal after canceling plans for a Quebec port due to
environmental concerns.
TransCanada's chief executive officer said the company was
preparing to work with Canada's new Liberal government on Energy
East as it reviews the country's regulatory regime.
The comments came a day after TransCanada asked the U.S.
government to delay its decision on the controversial Keystone
project, a move seen pre-empting a possible rejection by U.S.
President Barack Obama. urn:newsml:reuters.com:*:nL1N12X2K2
The White House said on Tuesday it would be "unusual" to
pause the U.S. government's years-long review process of the
pipeline. Spokesman Josh Earnest said the State Department was
trying "to determine exactly what the request is, and what is
motivating that request."
CEO Russ Girling told a conference call the company was
trying not to get involved in the politics of the Keystone XL
review, but needed time to work through the Nebraska review.
"We've worked very hard for seven years to try to keep our
head down and work our way through every twist and turn and
every additional request through the regulatory process," said
Girling. "There are things that we can control, there are things
we can't control and obviously. We're focused on those that we
can."
The nearly 1,200-mile (2,000-km) Keystone would carry
830,000 barrels a day of mostly Canadian oil sands crude to
Nebraska en route to refineries and ports along the U.S. Gulf
Coast.
A senior Liberal Party source told Reuters on Tuesday that
Energy East could go ahead if it passes a robust environmental
review. ID:nL1N12Y1PG
The centrist Liberals, to be sworn in on Wednesday, had
accused the outgoing Conservative government of weakening
Canada's environmental laws.
"I've been at this for 30 years and we've seen many changes
in the regulatory process over that period of time," said
Girling. "There's no question these things cost more money going
forward. But at the end of the day, if the result is a safer,
more reliable infrastructure, that makes sense for us."
If approved, Energy East would carry up to 1.1 million
barrels of crude oil per day from Alberta's oil sands to the
Atlantic coast, along a 4,200 km (2,850) route.
Earlier Tuesday, TransCanada reported a better-than-expected
quarterly profit, helped by rising revenue and higher income
from its existing Keystone systems.
Earnings before interest, taxes, depreciation and
amortization from TransCanada's Keystone pipeline system rose 32
percent to C$363 million ($275.90 million) in the third quarter,
helped by higher uncontracted volumes and a stronger U.S.
dollar.
TransCanada's stock was up 2 cents to C$44.24 in afternoon
trading.
Both Energy East and Keystone would give Alberta oil sands
producers access to new markets. Oil sands have long been a
target of environmentalists because of their carbon-intensive
production process.
TransCanada, which has been cutting jobs, said it expected
further restructuring in the fourth quarter and into 2016.
urn:newsml:reuters.com:*:nCCN1RJ95N
($1 = 1.3157 Canadian dollars)
(With additional reporting by Euan Rocha in Toronto, Tim
Gardner in Washington and Sneha Banerjee in Bengaluru; Editing
by Maju Samuel, Ted Kerr and Jeffrey Benkoe)