TransCanada announces major contract for Energy East pipeline

The Calgary-based company planning to build the Energy East pipeline says it has signed a provisional multimillion-dollar order for the construction of 22 modular enclosures along the pipeline route.

TransCanadaCorp.officials say their deal with ABB Canada would create 120 direct jobs in Quebec and a further 90 spinoff jobs outside the greater Montreal area.

But there's a catch:the jobs wouldmaterialize only if regulators approvethe controversial pipeline project.

• Montreal Mayor Denis Coderre says Energy East pipeline too risky
• Energy East pipeline cost up to $15.7B as TransCanada makes 700 route changes

The proposal has run into major opposition in Quebec, withthe mayors of Montrealand dozens ofsurrounding municipalities saying the project'senvironmentalrisks outweigh its economic benefits.

The $15.7-billion Energy East pipeline would carry a millionbarrels a day of western crude as far east as Saint Johnto servedomestic refineries and international customers.

The project would include the existing TransCanada pipeline as far east as Montreal and would require the construction of 1,600 kilometres of new pipeline, including a long section that would run through Quebec to the south coast of New Brunswick.

Construction possibleby 2018

If the federal government and the National Energy Board givetheirOK, TransCanadahas said it couldbegin construction by 2018. The pipelinewould be ready for use by 2020.

The proposed deal with ABB Canada is toconstructmultiple "e-houses"along the pipeline route tosupply electricity to pumping stations. The proposal calls for at least 22 prefab electrical structures tobe builtat a new production facility in thegreater Montreal region.

"This agreement demonstrates our ongoing commitment to hirelocal suppliers to safely build this piece of national energyinfrastructure and support job creation in Quebec," said EnergyEast president John Soini.

In January, the Liberals announced that pipeline projects like Energy East wouldface a new environmental assessment process. That willlikely delayan approval decision until well into 2018.

• Pipeline projects to face new environmental regulations

In a separate development, the energy board released a statement Wednesday saying it has askedTransCanadato repackage its application for the pipeline to make it easier for experts and the public to wade through.

"When considering the numerous supplemental reports, projectupdates, errata and amendments coupled with the sheer volume ofinformation presented in the application, the board is of the viewthat the application, in its present form, is difficult even forexperts to navigate," the boardwrote toTransCanada.

Theenergy board has given Energy Easttwo weeks to come up witha newtable of contents for the reviseddocument bundle, which already runs to more than 30,000 pages.