Energy East pipeline gets support from Quebec energy board

Quebec'senergyregulator is giving the thumbs-up to TransCanada Corp.'sEnergyEastpipeline, calling the plan "desirable."

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The $12-billion pipeline between Alberta and New Brunswick aims to connect western crude with eastern refineries and new markets across the Atlantic.

It would make use of under-used natural gas pipe already in the ground for about two thirds of the way, with new pipe being constructed in Quebec and New Brunswick.

In an opinion made public today, Quebec'senergyboard says petroleum shippers should assume the costs related to that aspect ofEnergyEast.

And it adds that distributors of natural gas should not be the only ones to pay the costs of shipping gas.

The board estimates the demand for natural gas in Quebec will grow by about two per cent annually between now and 2030 and that the only reliable option is to buy gas from outside Quebec and bring it into the province via TransCanada's network.