U.S. Markets open in 1 hr 9 mins

TransCanada to build pipeline to Eastern Canada

Rob Gillies, Associated Press

TORONTO (AP) -- Pipeline company TransCanada says it will go ahead with a $12 billion plan to ship 1.1 million barrels of oil per day from Alberta to the country's Atlantic coast that would allow Canadian crude to be exported to Asia.

TransCanada said Thursday the pipeline will terminate in Saint John, New Brunswick, where a new deep-water marine terminal for tankers will be built.

Natural Resource Minister Joe Oliver says he welcomes the prospect of transporting crude from Western Canada to consumers and refineries in Eastern Canada and ultimately to new markets abroad.

The announcement comes as TransCanada faces stiff opposition to its proposed Keystone XL pipeline from Alberta to Texas. President Obama's initial rejection of Keystone went over badly in Canada, which relies on the U.S. for 97 percent of its energy exports.