OREANDA-NEWS. TransCanada has made about 700 route changes to its proposed 1.1mn b/d Energy East crude pipeline and struck agreements with natural gas providers over Mainline conversions, but the project cost will rise by 31pc, the company said today.

The line from western Canada to the Atlantic coast, which is anchored by the conversion of a gas trunk along most of the route, is now expected to cost C$15.7bn ($11.3bn), compared with a previous estimate of C$12bn.

TransCanada filed an amendment to its application with the National Energy Board (NEB) outlining the changes. The adjustments to the route are designed to avoid sensitive environmental areas while maintaining a viable project to connect western Canadian heavy crude production to the country's east coast.

"This amended filing has been shaped by direct, on-the-ground input from Canadians across the country," chief executive Russ Girling said.

The company also has come to an agreement with natural gas distributors in Ontario and Quebec, who initially had balked at the proposal fearing that conversion of one of the Mainline gas pipelines from western Canada could leave eastern Canada short during high-demand winter periods. The company is building the Eastern Mainline Project to help ensure gas supply to the region.

Energy East, which terminates at Irving Oil's 300,000 b/d refinery at Saint John, New Brunswick, would help TransCanada overcome the recent US rejection of its proposed 830,000 b/d Keystone XL pipeline that would have expanded access to the US Gulf coast.

The project received an unexpected boost this week with word that the US is on the verge of eliminating four decades of crude export restrictions. TransCanada's proposed 300,000 b/d Upland pipeline connecting the Williston basin to Energy East would give that crude access to export tankers in the Atlantic basin.