TransCanada Corporation is no longer proceeding with its proposed Energy East Pipeline and Eastern Mainline projects.
President and CEO Russ Girling said in a statement Thursday morning following an in-depth analysis of the new requirements, they will inform the National Energy Board that they will not pursue their applications.
“We appreciate and acknowledge the support of the trade union, manufacturing and commercial organizations, the industry, our clients, Irving Oil, the various levels of government and the more than 200 municipalities that have passed resolutions for projects. Above all, we thank Canadians across the country who have contributed to the development of these initiatives.”
Last month, TransCanada announced they were looking for a 30-day suspension of the applications due to the National Energy Board’s changes in their review of the two proposed projects. The NEB said they would look at the environmental impacts of oil spills, potential consequences, proposed mitigation and response measures, as well as upstream and downstream greenhouse gas emissions, and the potential market impacts these gas reduction targets could have on the economic viability of the projects.
The Energy East Pipeline was supposed to carry bitumen resources from Alberta to Saint John, New Brunswick giving access to Atlantic markets. While the Eastern Mainline Pipeline would have seen a new gas pipeline and related components in Ontario.
Meanwhile, strong reactions have been coming in from politicians across the country since the announcement. Fort McMurray-Conklin MLA Brian Jean said in a statement, “it’s a shameful moment in Canadian history, an attack on Alberta and a total failure of the NDP.”
“TransCanada is unlikely to reconsider cancelling the Energy East pipeline project unless they see the Government of Alberta using its full efforts to protect its constitutional rights and to ensure that goods and resources can get to markets.”
Premier Rachel Notley says they are deeply disappointed by the recent decision from TransCanada.
“Our government has supported Energy East since the project was proposed. We believe this nation-building project would have benefited all of Canada through new jobs, investment, energy security and the ability to displace oil being imported into Canada from overseas and the United States.”
We understand that it is driven by a range of factors any responsible business must consider. Nonetheless, this is an unfortunate outcome.
— Rachel Notley (@RachelNotley) October 5, 2017
New Brunswick Premier Brian Gallant echoed Notley saying, “Like many New Brunswickers, “we are disappointed. The project would have created jobs in New Brunswick and helped the Canadian economy.”
While the federal minister of natural resources Jim Carr says TransCanada Pipelines’ decision to cancel the Energy East Pipeline project was a business decision.
“Our government has approved two major export pipelines that are now under construction, and a third is expected to start soon. The Trans Mountain expansion and Line 3 projects alone represent over $11.6 billion in investment and will support thousands of jobs.”
TransCanada expects an estimated $1 billion after-tax non-cash charge will be recorded in fourth quarter results.