Alberta, NB premiers disappointed by cancellation of Energy East pipeline project
Oct 06 2017
The Canadian Energy Pipeline Association, an industry group representing Canadian pipeline companies including TransCanada, called the project cancellation "extremely disappointing" in a release.
The National Energy Board ended up suspending the hearings into the proposed 4,500-kilometre pipeline and selecting a new panel.
"I could be at the grocery store, I could be at the coffee shop, and people would constantly stop or say to me "protect our drinking water".
"After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications", TransCanada said on Thursday. The pipeline pinch already had producers shipping more of their crude by rail, which can cost as much as three times more to get oil from Alberta to the U.S. Gulf Coast. Both projects are expected to be in service by 2019 to ease a pipeline shortage facing Canadian oil companies.
"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.
New Brunswick Premier Brian Gallant didn't mask his disappointment.
Alberta Premier Rachel Notley says her government has always supported Energy East because of the new jobs, investments and markets it would create.
It's also going to withdraw from a Quebec environmental review.
But the company in recent years has dealt with a fall in the price of crude oil, which is now hovering around $50 a barrel, down from almost $100 a barrel in mid-2014.
Saskatchewan Premier Brad Wall said Ottawa is ultimately to blame for TransCanada's decision to cancel its proposed Energy East Pipeline and says the government's actions have undermined national unity. "While this is not the result we hoped for, we will continue to drive our business forward to ensure a positive and prosperous future for our region, our communities and our company".
October 5, 2017: TransCanada announces it is no longer going ahead with the Energy East pipeline project.
The vast majority of Canadian crude exports go to the United States, and Energy East would have shipped 1.1 million barrels a day to east coast ports for loading onto tankers destined for higher-priced markets in Europe and Asia.
August 1, 2013: TransCanada announces at the height of the oil boom that it is officially moving ahead with the Energy East pipeline project, promising jobs, tax revenue, and energy security.
"Energy East was just the latest in a string of ill-conceived tar sands pipeline projects".
It allowed them to avoid past criticism from environmental groups over other successful pipeline projects, but exposed them to criticism they are soft on job creation and investment.
There was jubilation in some quarters on Thursday, with Montreal Mayor Denis Coderretweeting that the project's abandonment is a major victory.
The pipeline's importance has somewhat diminished for TransCanada since the United States this year approved Keystone XL pipeline, which would run from Alberta to US refineries, but supporters said they were "extremely disappointed" by the decision.
He says the project was never properly explained to Quebecers.