TransCanada cancels Energy East pipeline project

Posted October 06, 2017

Energy East, which would take 1.1 million barrels of crude from Canada's oil heartland of Alberta, would have fetched higher prices for Canadian producers, whose landlocked product trades at a discount to the West Texas Intermediate benchmark.

It will now inform the federal and provincial regulators that it will no longer be proceeding with its applications for the projects.

TransCanada would have to calculate the downstream emissions caused by the pipeline, meaning emissions arising from when the crude oil carried in it was used.

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

TransCanada says it's cancelling plans for the Energy East pipeline and Eastern Mainline projects.

"Given increasing public interest in GHG emissions, together with increasing governmental actions and commitments (including the federal government's stated interest in assessing upstream GHG emissions associated with major pipelines), the Board is of the view that it should also consider indirect GHG emissions in its [National Energy Board] Act public interest determination for each of the Projects".

In November 2015, the Alberta government announced its climate plan, which gained support from a wide range of environmentalists and the CEOs of Suncor, Canadian Natural Resource Ltd. (CNRL), Shell and Cenovus.

Nonetheless, this is an unfortunate outcome for Canadians.

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 economic benefits of the Energy East pipeline have never been added to our economic and fiscal projections", he said.

TransCanada will also notify Quebec's Ministère du Developpement durable, de l'Environnement, et Lutte contre les changements climatiques that it is withdrawing the Energy East project from the environmental review process.

The company said Thursday it was abandoning the project after a "careful review of changed circumstances". Several worldwide companies have sold off oilsands projects in the past year.

"We still do not have a regulatory process that gives clear certainty to companies..."

"This is proof positive of two things - first, that climate action and pipelines don't mix".

Montreal Mayor Denis Coderre said the TransCanada announcement was "a attractive victory" against a "botched" pipeline project.

"Again it shows how local governments can make a difference", Coderre explained.

Carr shrugged off Raitt's criticism, saying there are signs of growth in the energy sector despite "market challenges" posed by sagging oil prices. Kinder Morgan's TransMountain pipeline has come under fire for inadequately consulting with indigenous communities along the route, and it had a "very bad" environmental review, Scott said.

The company suspended its application on Sep.