Canada's province of Alberta, having the world's third largest crude reserves, made a deal with  TransCanada Corp (TRP) to ship oil via pipeline for C$5 billion.

Alberta's provincial government booked capacity in March of this year to transport an estimated 100,000 a day for the proposed Energy East plan. This would convert part of TransCanada's natural gas mainline into an oil conduit.

The tolls that the provincial government would pay are estimated to amount to C$5 billion for the next 20 years.

Canadian oil producers are backing the new pipelines. The access to the North American coasts will enable higher oil prices. The heavy crude oil from Canada traded at US$15.75 a barrel which is less than the price for the US crude grade prices.

TransCanada is currently considering if they would continue transactions with East Energy. This is in line with the end of a successful commercial support.

Alberta oil sands are the world's third largest proven oil reserves after Saudi Arabia and Venezuela.