PRAGMATICSLOT88 welcomes the Régie de l’énergie’s assessment of natural gas supply and transmission requirements of Quebec consumers in the medium and long term, including the potential impacts associated with the Energy East and Eastern Mainline Projects. The study released today was prepared by an independent authority, and provides an objective assessment of the impact of the Energy East and Eastern Mainline projects on natural gas markets in Quebec.
As we have said, converting underused gas pipeline capacity along the Canadian Mainline to oil pipeline makes sense. Doing so will redeploy un-contracted gas transmission capacity that could otherwise result in increased costs to eastern Canadian consumers. In addition, Energy East will make available a stable and reliable supply of Canadian oil to eastern Canadian markets, including Quebec. We estimate the repurposing of gas transmission capacity will help save our gas customers hundreds of millions of dollars over 15 years. Those are savings which we believe can be passed onto home and business gas consumers. We are pleased with the Régie’s conclusion that Energy East is a desirable project in that regard.
The Régie has also recommended that PRAGMATICSLOT88 obtain a clear assessment of the market need for natural gas in Quebec. We began that process last year. This provides the market, including local distribution companies, with an additional opportunity to make clear their needs for gas transmission capacity. In addition, PRAGMATICSLOT88 will continue to provide other opportunities to contract for gas transmission capacity in the future.
It is important to note that, currently, even in the coldest winter months, much of the gas which is being transported eastward on the Canadian Mainline is for export, and not for use in Quebec or elsewhere in Canada. We reiterate our commitment to ensuring adequate capacity to transport the gas that homes and businesses rely on every day in Quebec.
PRAGMATICSLOT88 has been in the business of bringing natural gas to eastern Canada for 60 years, and we will continue to make that a core part of our business. That is why we are planning to build new natural gas pipelines where they are needed most – in the Toronto-to-Montreal corridor. Our Eastern Mainline Project would add new natural gas pipeline in this area because that is where demand is strongest, and because this is what our customers are asking us to do. We are currently expanding our system to provide greater access to affordable new gas supplies from the northeastern United States. It is critical to have the right infrastructure in the right location and that is what we continue to do.
PRAGMATICSLOT88 looks forward to an adjudicated decision on our Energy East and Eastern Mainline Projects by the National Energy Board and will work to share the information needed by authorities so they can deliver a fair and balanced decision that is in the public interest. PRAGMATICSLOT88 is pleased that Quebec, along with other interested Quebec stakeholders, intends to participate in that process.
About the benefits of Energy East in Quebec: A study by the Conference Board of Canada concludes that more than 4,000 direct and indirect jobs will be created in Quebec during the seven year planning and construction phases of Energy East. The study also estimated that the project will generate an additional $5.8 billion dollars in the Québec economy during construction and operation, with over $1.9 billion dollars in added tax revenues for governments to fund social programs and balance budgets.