TransCanada Cancels Energy East Oilsands Pipeline


TransCanada pulled its application for Energy East once the National Energy Board (NEB) ruled that it would consider all greenhouse gas emissions resulting from the project.

"I could be at the grocery store, I could be at the coffee shop, and people would constantly stop or say to me "protect our drinking water".

Calgary-based TransCanada (TSX:TRP) had announced last month that it was suspending its efforts to get regulatory approvals for the mega projects.

"Whether they like it or not, governments and industry can't ignore us anymore".

Patrick DeRochie of Environmental Defence says in response, "Today brings good news for communities, First Nations, and Canadians along the pipeline route who took a stand against Energy East".

Alberta Premier Rachel Notley says Energy East - which would have carried Alberta oil to tidewater - would have benefited all of Canada with new jobs, investment, energy security and the ability to displace imported oil.

The Conseil du Patronat, Quebec's largest employers' group, expressed its disappointment, saying from day one, this project ran into a brick wall of opposition.

October 29, 2014: A report released by environmental groups questions whether Energy East is necessary to supplant Eastern Canada's oil imports from the foreign suppliers frequently mentioned by TransCanada.

The Liberals are defending jobs while protecting the environment, Trudeau insisted during question period, but "the market conditions have changed fundamentally" since the pipeline was proposed, including a steep drop in oil prices, he said.

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In a statement on Thursday, TransCanada president Russ Girling said the decision comes "after careful review of changed circumstances".

"But there is no doubt that with the Energy East pipeline project we would have been able to do even more to grow the economy, strengthen education and improve health care in our province". It would've carried 1.1 million barrels of oil per day from Alberta and Saskatchewan to eastern Canadian refineries if built.

The Canadian Energy Pipeline Association (CEPA)

October 8, 2015: Environmental group Environmental Defence says the National Energy Board is rushing the process for Energy East by gathering oral traditional evidence from aboriginal bands before it has received a complete application.

The company expects an estimated $1 billion after-tax non-cash charge will be recorded in the company's fourth quarter results.

Wall also took aim at Montreal Mayor Denis Coderre - an outspoken critic of the Energy East project.

TransCanada said it needed time to review recent changes announced by the NEB on environmental assessment factors and other issues related to the projects.

RBC Capital Markets analyst Robert Kwan said in a report the news was "neutral" from an investor point of view because of market skepticism that the project would proceed.

The pipeline's importance has somewhat diminished for TransCanada since the United States this year approved Keystone XL pipeline, which would run from Alberta to US refineries, but supporters said they were "extremely disappointed" by the decision.