Canadian Manufacturing

Energy East pipeline’s $12B price tag likely to rise, says Transcanada

TransCanada hopes the 4,600-kilometre pipeline will be in service by 2020 if it is approved

CALGARY—TransCanada Corp. is warning the $12-billion price tag for its Energy East pipeline project is expected to grow.

The company says a decision in April to relocate a proposed marine terminal at Cacouna, Que., due in part to concern for beluga whales near the site will increase costs.

TransCanada hopes the 4,600-kilometre pipeline, which would ship oil from Hardisty, Alta., to Saint John, N.B., will be in service by 2020 if it is approved.

The comment came as TransCanada said it earned $429 million or 60 cents per share in the quarter ended June 30, up from $416 million or 59 cents per share a year ago.

Revenue improved to $2.63 billion compared with $2.23 billion a year ago.

TransCanada says its comparable earnings for second quarter totalled $397 million or 56 cents per share compared with $332 million or 47 per share for the same period last year.

The company says the improvement was due to higher earnings from the Canadian Mainline, NGTL System, Keystone, Bruce Power and Eastern Power.

They were partially offset by lower contributions from its U.S. Power and Western Power operations.

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