Red Rock Indian Band has signed a letter of intent (LoI) with TransCanada to launch a formal working group for the electricity transmission opportunities in support of the 4,600km Energy East Pipeline project on the Red Rock First Nation territory in northwestern Ontario, Canada.

The Energy Partnership Working Group (EPWG) will enable the firms to negotiate on the electricity transmission viability to power the Energy East Project.

The working group will also allow the representatives of Red Rock and the Energy East project to assess two new transmission line projects that can power the Eagle Head pump station and the surrounding community.

Red Rock Indian Band chief Pierre Pelletier said: "Red Rock has had a long-standing and respectful relationship with TransCanada dating back to when the gas pipeline was built on our reserve lands.

"With today’s agreement, Energy East has once again demonstrated this mutual respect by engaging in a respectful dialogue, allowing us to share information and work toward a meaningful, long-term economic benefit to my community."

The LoI follows the talks between Red Rock Indian Band and TransCanada held in March this year over the electricity requirements and to explore potential electrical infrastructure opportunities in the region by partnering on the project.

Energy East Pipeline president Francois Poirier said: "Today’s agreement with Red Rock is a critical step forward in allowing us to explore electricity transmission solutions in support of Energy East, and the Red Rock community itself."

The Energy East pipeline is designed to supply 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to refineries in Eastern Canada.