Dispute over conversion costs involving Energy East pipeline resolved

EDMONTON — A spat over conversion costs involving TransCanada’s proposed Energy East pipeline project from Alberta and Saskatchewan to eastern refineries and ports has been resolved.

Natural gas customers in Central Canada and New Brunswick will receive a $100-million tariff reduction tied to their energy use from when the converted pipeline enters into service through 2050.

The deal follows the resolution of the dispute between Calgary-based TransCanada and three major gas distributors over the $12-billion project.

READ MORE: TransCanada reaches deal with gas companies 

Officials say the agreement means the cost of converting the existing pipeline won’t be borne by natural gas customers.

The three distributors came together nearly a year ago to challenge the conversion of an existing 3,000-kilometre segment of cross-Canada natural gas pipe to oil.