A new analysis from Wood Mackenzie says there isn’t enough demand to build both the Keystone XL and Energy East pipelines.
The firm said today that Energy East would also be a higher cost pipeline, with producers paying an extra 2 or 3 dollars per barrel to send bitumen to the east coast, as opposed to sending it down Keystone XL to the US gulf coast.
It also says if both pipelines were built, there would be excess capacity on the lines.
It also says the recently approved Northern Gateway pipeline won’t actually need to be in service until 2025.
It expects that Kinder Morgan’s expansion of the Trans Mountain pipeline will be the most likely line to actually get built in the next few years.
