TransCanada drops Energy East pipeline plan

Geneva Matthews
October 6, 2017

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

In its news release, TransCanada said it will record a non-cash charge of about $1 billion in its fourth-quarter results to account for funds invested in the failed venture. Many environmental groups opposed the pipeline as well. 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.

REGINA-The premiers of Alberta and Saskatchewan say Energy East would have been a nation-building project and that TransCanada's decision to cancel the pipeline is a bad day for the West.

Aurore Fauret, Tar Sands Campaign co-ordinator at 350.org said the decision is proof that climate action and pipelines don't mix, and that organized resistance can prevail.

"Given the positive signals the federal government has sent to TransCanada over the last weeks ... we believe it is clear that TransCanada is not proceeding with its application for the Energy East pipeline because recent changes to world market conditions and the price of oil have negatively impacted the viability of the project", Gallant said. TransCanada warned then that the project could ultimately be cancelled.

The B.C. government doesn't share her view, however, and is now part of a court challenge against Trans Mountain being heard this week.

The decision, almost a month after the company halted regulatory applications for the project in the face of tough official scrutiny, is a blow to the ailing economy of the New Brunswick province and heads off a broader political row over the project.

March 1, 2016: National cohesion on Energy East drifts further out of reach after the Quebec government announced plans to seek an injunction against TransCanada.

The federal government is now in the process of permanent environmental assessment reform, including the modernization of the National Energy Board with announcements "in the not too distant future", said Carr.

While Energy East's collapse may cost Trudeau support in the traditionally conservative oil heartland of Alberta it is likely to prove popular in the eastern province of Quebec, which has far more parliamentary seats and where pipeline opposition from politicians and environmental groups had been stiff.

The Canadian Energy Pipeline Association and others blamed TransCanada's decision on Ottawa's "unclear decision-making process".

October 5, 2017: TransCanada announces it is no longer going ahead with the Energy East pipeline project.

"It is a good thing that Mr. Coderre's hypocrisy needs no pipeline for conveyance, for it would need to be very large and could never get approved for construction", he said. It was first proposed in 2013.

"This was an investor decision that resulted from the low global price of oil".

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