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Sudbury

What does Donald Trump's Keystone XL pipeline OK mean for Energy East?

The executive action taken by United States President Donald Trump to move forward on a controversial cross-border pipeline project may mean another one that crosses northern Ontario takes a back seat.

Analysts conflicted on future of natural gas pipeline conversion project that runs through northern Ont.

TransCanada's Energy East pipeline would have moved crude from Alberta to the Atlantic. (Canadian Press)

The executive action taken by United States President Donald Trump to move forward on a controversial cross-border pipeline project may mean another one that crosses northern Ontario takes a back seat.

Analysts are divided on what impact the apparent revival of the Alberta-to-Texas Keystone XL pipeline will have on the Energy East project that would go from Alberta to Canada's east coast.

TransCanada Corporation is the company behind both projects, and while the idea for a cross-Canada pipeline had been around before Keystone was blocked by former U.S. presidentBarackObamain late 2015, the idea really picked up steam afterward.

The new administration's more receptive tone to Keystone means there's no longer a need for Energy East, according to Divya Reddy, an analyst with Eurasia Group.
A yard in Gascoyne, N.D., which has hundreds of kilometres of pipe stacked inside that are supposed make up the Keystone XL pipeline. (Alex Panetta/Canadian Press)

"It doesn't seem like that extra capacity is actually needed," she said.

That's good news for Ambrose Raftis, with the Temiskaming Environmental Action Committee, who said Energy East which would cross northern Ontario, including a stretch in the northeast from Hearst to Mattawa is the more "technically flawed one."

"It has a huge distance and covers over 300 waterways so the idea of it to me has always seemed absurd," he said.

"Why would you put in a pipeline that had so many levels of risk?"

Keystone's comeback doesn't change Energy East: TransCanada

Not everyone agrees that Trump's support of Keystone XL will have any impact on other projects.

TransCanada has said Keystone's comeback doesn't change its plans for Energy East, and Tim McMillan, the president of the Canadian Association of Petroleum Producers said that he still sees a need for the cross-Canada project.

"India, which will be becoming the largest importer of crude oil in five years, will require Energy East," he said.

The National Energy Board is expected to hold public hearings on the proposed Energy East pipeline sometime this year.

A hearing was scheduled to take place in North Bay in November, 2016, but was cancelled when the review panel resigned amidst allegations of bias.