OEB warns about the Energy East pipline project

The Ontario Energy Board says the environmental risks of the $12 billion Energy East pipeline project outweigh the potential benefits, and warns it will drive up natural gas prices.

TransCanada Corp. is planning to build the pipeline to bring Alberta crude to refineries in Quebec and to a refinery and marine terminal in Saint John, New Brunswick.

For two-thirds of the way it plans to convert a natural gas pipeline for oil and then build all new pipe through Quebec and New Brunswick.

After 15 months of consultations with people in communities along the route of the pipeline in Ontario, the board found people are worried about possible polluting of lakes, rivers and drinking water supplies.

The OEB report also said residents are rightly concerned the project could drive up natural gas prices when existing pipeline is converted to carry oil. The OEB’s technical experts found there will be higher natural gas prices as a result of Energy East because there will be less supply.

The board says the benefits of construction of the Energy East project to Ontario would include a $12 billion to $19 billion impact on gross domestic product and a full-time equivalent job impact of up to 114,000 positions.

The board’s report will form the basis of Ontario’s position when the National Energy Board holds hearings on Energy East, expected sometime in 2016.