Facing tougher regulations, TransCanada scraps $12 billion oil pipeline

Katrina Barker
October 6, 2017

TransCanada said it will record a non-cash charge of about $1 billion in its fourth-quarter financial results, reflecting the reduced carrying value of the projects.

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.

Irving Oil did not make anyone available for an interview, but the company president said in a release that this is a blow for the country, not just Saint John and New Brunswick.

It's also going to withdraw from a Quebec environmental review.

Supporters of the Calgary-based company's project - which would build and operate a 4,500-kilometre pipeline from Alberta to the East Coast - are casting the blame on costs and delays from federal government regulatory meddling, while other point to simple market forces. It said it had to review an NEB panel's decision to allow consideration of greenhouse gas emissions caused by producing and processing the oil transported in the pipeline, an unprecedented expansion of the scope of the inquiry.

"The emissions associated with new pipelines are inconsistent with our climate imperative and the threat to waterways, wildlife, and lands was enormous".

Alberta Premier Rachel Notley says her government has always supported Energy East because of the new jobs, investments and markets it would create.

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.

July 31, 2015: TransCanada warns the $12-billion price tag for its Energy East pipeline project is expected to grow.

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.

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. Companies are not eager to invest in expensive tar sands projects unless the price of oil comes back up.

Suncor Energy Inc. (TSX:SU), Canada's largest oil, gas and refining company by market capitalization, had hoped Energy East would allow it to replace US and offshore oil at its 137,000-barrel-per-day Montreal refinery, said spokeswoman Sneh Seetal.

Energy East would have added another 1.1 million barrels per day to that capacity.

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

February 3, 2016: The National Energy Board directing TransCanada to rework its application to build the contentious Energy East pipeline because the document is too hard to understand - even for experts. 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.

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