TransCanada strikes equipment deal with ABB Group



TransCanada Corp. is going on the offensive in its efforts to win over wary Quebeckers to its controversial Energy East oil pipeline project.

Company officials on Wednesday announced a deal with a power equipment manufacturer to supply electrical equipment for the pipeline in the Montreal region that will create up to 120 jobs in Quebec.

TransCanada said on Wednesday it has an agreement with the Canadian arm of Zurich-based ABB Group for the manufacture of at least 22 electrical stations in the Montreal area. The deal is valued at “several million dollars.”

Another 90 indirect jobs besides the 120 direct construction jobs will be created, said the head of ABB’s Canadian operations, Nathalie Pilon.

The deal with ABB is just one step in a series of other anticipated job-creating partnerships with companies in Quebec, Louis Bergeron, vice-president for Energy East in Quebec and New Brunswick, said.

“We have the intention of continuing with other partners in Quebec,” Mr. Bergeron said at a news conference Wednesday.

John Soini, president of the Energy East Pipeline Project, said Calgary-based TransCanada is receptive to the safety, environmental and economic concerns of Quebeckers regarding the $15.7-billion pipeline, which would move 1.1 million barrels of Western crude through Quebec and on to a refinery in Saint John, N.B.

“I would hope that [Wednesday’s announcement] would be seen as an expression of our intent to develop economic benefits in Quebec,” he said.

Added Mr. Bergeron: “It’s one step in this direction. There’s much more that will be needed.”

The project faces stiff opposition from Montreal Mayor Denis Coderre and mayors in the surrounding area, who argue that the environmental and safety risks outweigh the economic benefits and modest job-creation.

Prime Minister Justin Trudeau met with Mr. Coderre last week as part of his efforts to act as a self-appointed referee in the politically charged debate over the impact of oil and gas pipeline projects across the country. Mr. Coderre said he and his fellow area mayors require assurances that the pipeline project is indeed low-risk, particularly when it comes to potential contimination of local waterways.

Mr. Coderre was not immediately available to comment on the TransCanada-ABB deal.

A spokesman for the Union of Quebec Municipalities said the group will study the agreement but remains opposed to the Energy East project.

“For the time being, our position hasn’t changed,” Patrick Lemieux said Wednesday.

“As long as more details about public safety and environmental issues are not forthcoming we remain opposed,” he said.


Courtesy: The Globe And Mail

4 comments

  • Needreason

    If they are against it then not one of these things should be built in Quebec. Nothing in Quebec is value added to the RoC.

  • G.E.T.Excellent News. Let’s get building.

  • CanadianSentinal

    The NEB just released a warning about the fact substandard pipes and fittings that violate CSA codes are already being used in Canada on oil and gas lines. It’s on the main page of the NEB website right now in their What’s new section. Also we have to deal with the fact that right now, the barrel costs more than the oil it holds. I have a hard time believing projects like this are economically worth it. I have little confidence in the materials being used and according to the Federal Environmental Commissioner the NEB can’t even secure that conditions of approval are being reasonably met in 50% of the cases. These are serious economic risks when you factor in the natural capital worth of the water supplies at risk by these pipelines. Industries, communities, fisheries and First Nation’s demand reasonable water protection and there is little evidence to show the steps are being taken to assure this. With the low price of oil what assurances are there that money will be spent to make sure the line is actually up to CSA code and that the risks to water supplies and communities will be reasonable offset? With the current economic reality I don’t see this as a venture worth doing at all. The world has changed. Time for industry to wake up and adapt or fail.

  • fh7

    As a shareholder I would hope that TCPL is selecting suppliers based on an assessment of the best equipment at the best price with the best possible terms and conditions and not disproportionat­ely based on seeking favorable political outcomes.

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