Skip to main content

A spokesman for Energy East says the proposed $15.7-billion pipeline from Alberta to New Brunswick already has long-term contracts with oil shippers, demonstrating the market demand over the coming decades.

Daniel Acker/Bloomberg

Alberta Premier Rachel Notley is telling Ottawa to stop "dithering" on pipeline approvals, but an internal federal analysis may indicate why the Liberals are content to consult widely before making a decision.

A memo to the deputy minister of finance says low oil prices mean there is enough transport capacity in Canada without any new pipelines until at least 2025.

The memo, dated last December but obtained this week through the Access to Information Act, also says TransCanada's proposed Energy East pipeline would have only a marginal impact on the price differential for Canadian producers.

Story continues below advertisement

Canadian oil was selling at a $25-per-barrel discount or more in 2012 and 2013 compared to the price for international Brent crude, but that discount has all but disappeared.

The memo says Energy East would reduce the differential by only $1.48 per barrel compared to oil shipped by existing pipelines to the United States.

A spokesman for Energy East says the proposed $15.7-billion pipeline from Alberta to New Brunswick already has long-term contracts with oil shippers, demonstrating the market demand over the coming decades.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter