TransCanada abandons Energy East, Eastern Mainline projects

TransCanada

TransCanada cancels plans for Energy East pipeline

TransCanada's decision is also a blow to the ailing economy of New Brunswick province, where the pipeline would have terminated.

"The National Energy Board needs to send a clear message on what the future of project reviews look like in Canada", she said.

As a result of its decision to end the projects, TransCanada said it is reviewing the project's 1.3 billion Canadian dollar ($1.04 billion) carrying value and expects to record an estimated $1 billion impairment charge in its fourth quarter. Speaking to reporters Thursday morning in Montreal, he said the decision was also the result of leadership from his city and other municipalities who insisted on getting reforms to the National Energy Board to ensure a fair process.

The review process is over, but several legal challenges to the pipeline - including over whether the environmental review adequately considered climate impacts - have tied the project up in the courts.

December 17, 2015: TransCanada files an amended application and cost estimate of $15.7 billion for Energy East.

Canadian Association of Petroleum Producers CEO Tim McMillan said the Energy East cancellation would force Canada to rely more on the U.S.to be it's "broker" for oil and gas produced domestically at a time when the North American Free Trade agreement is being renegotiated.

"TransCanada made the decision to cancel Energy East - but make no mistake, the reasons for it fall at the feet of Prime Minister Justin Trudeau and the federal government", Wall said in the statement.

Last month the company revealed that it was suspending efforts to get regulatory approval.

The United Conservative Party Official Opposition called the decision "devastating news" for everyday Albertans in a statement Thursday. The province's environmental regulation agency quickly suspended hearings into the project, which were meant to conduct an environmental assessment of the risks and benefits and produce a report to Quebec's environment minister.

"This project was so wrong and so risky, its hard to believe it was seriously contemplated", Gretchen Fitzgerald, national program director of environmental organization the Sierra Club, said.

As 350.org founder Bill McKibben quipped then via tweet, "Transcanada may abandon its #energyeast pipeline because it doesn't want to confront the climate implications".

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

Competing pipeline projects, including Enbridge Inc.'s Line 3 replacement project and Kinder Morgan Canada's Trans Mountain expansion project, have been approved by the Liberal government and are moving forward.

Energy East would have provided Canadian oil producers with access to buyers in India, one of the fastest-growing markets for petroleum, because shipping there is faster from Canada's Atlantic Coast than from its Pacific Coast, said Tim McMillan, chief executive officer of CAPP.

That led to speculation from all sides as to what the circumstances were, with critics arguing cancellation was prompted by low oil prices and the lack of commercial need for the project and supporters casting the blame on costs and delays from federal government regulatory meddling.

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