Published: Fri, October 06, 2017
Markets | By Rosalie Gross

TransCanada cancels plans for Energy East pipeline

TransCanada cancels plans for Energy East pipeline

But environmental groups questioned the need for a pipeline they said was at odds with Canada's commitment to tackle climate change.

The company said the decision came after a "careful review of changed circumstances".

The decision comes a month after TransCanada asked the National Energy Board (NEB) for a 30-day suspension of its application after the pipeline regulatory body said its review would include emissions.

TransCanada had hit regulatory hurdles even before the greenhouse gas assessment was announced.

"It's a blow. It's being portrayed as a business decision but it's more than that", said Chris Bloomer, CEO of the Canadian Energy Pipeline Association, adding the decision means about 400,000 barrels per day of foreign oil will continue to be imported into Eastern Canada. It says it will for the first time consider the public interest impact of upstream and downstream GHG emissions from potential increased production and consumption of oil resulting from the project. It was supported by the governments of New Brunswick, Saskatchewan and Alberta, but opposed by Quebec.

After the Canadian government made a decision to look closely at the potential climate impacts of the project, tar sands pipeline developer TransCanada scrapped plans to build a pipeline from the Alberta tar sands to the East Coast of Canada, where oil would have been loaded on tankers bound for refineries in the Gulf Coast.

The project would have seen 612 kilometres of natural gas pipeline in Saskatchewan converted. The project was cancelled Thurs. "Nonetheless, this is an unfortunate outcome for Canadians".

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Russ Girling, executive director of the Calgary-based company, said in a statement that he will report to the National Energy Board that TransCanada will not proceed with the requests. That pipeline, however, is now locked up in lawsuits, and the B.C. government is intervening in challenges to its approval. The company warned then that it could cancel the proposed 2,800 mile oil pipeline from Hardisty, Alberta, to Saint John, New Brunswick, which would have been most expensive project in TransCanada's history. In a statement, he sought to console job-seeking constituents who were counting on the pipeline's approval.

"We're disappointed", she said. "And it may well be that they looked at their capital plan and they looked at their ability to execute on two major projects simultaneously and shelved one for a while in favour of the one that's more likely to move forward quickly". We got a lot of other things on the go.

When it was announced in 2013, Energy East was hailed as a nation-building project that would unlock Canadian exports and boost economic growth along its route. Like Northern Gateway, Keystone XL, Enbridge's Line 3, and Kinder Morgan before it, this pipeline generated unprecedented grassroots opposition from Indigenous peoples, and front-line communities across the continent aiming to protect their climate, their water, and their rights.

"Today is not a good day for Canada".

Jean singled out the mayor of Montreal, Denis Coderre, accusing politicians in the east of taking "pride and credit" when energy projects that would have benefited the country fall through.

Heurtel said the project wasn't well explained to Quebecers.

"Moving away from fossil fuels will, by leaps and bounds, out-match the oil industry. We have to remain vigilant, look at what happens around us and react whenever called on".

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