Alberta, NB premiers disappointed by cancellation of Energy East pipeline project

06 October, 2017, 00:50 | Author: Cassandra Gardner
  • The proposed route of the Energy East pipeline was shared with the media at an Aug. 2013 press conference with Trans Canada officials

Energy infrastructure firm TransCanada has abandoned two major Canadian pipeline projects.

June 16, 2016: The National Energy Board says it has officially started the clock on its review of Energy East.

"We're disappointed. We supported the Energy East pipeline because it would have provided supply options and access to western Canadian crudes for our Montreal refinery and also would have provided access to new markets which is critical for Canadian producers".

Through a Memorandum of Understanding (MOU) signed between TransCanada and the Pipe Line Contractors Association of Canada, the IUOE would have participated in building the Energy East Pipeline.

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In August, the NEB announced it would expand its assessment of the project into risks associated with potential accidents and system malfunctions that could cause oil spills.

Wall then accused the feds of being "at best, ambivalent about the project" and said they "moved the goalposts" at the last minute by asking the regulator to consider the impact of upstream greenhouse gas emissions. "If the pipeline isn't built... there is no oil that needs to go anywhere, because the project that would have filled the pipeline never gets built". It was first proposed in 2013.

New polling released by Abacus Data in September indicates a majority of Canadians (59 per cent) are growing "more anxious about climate change and it is changing my view of how long we should use oil".

In a press release issued Thursday morning, Transcanada has indicated that they have made a decision to bury the project of $ 15.7 billion "as a result of an in-depth analysis of the new requirements".

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Canada's National Energy Board (NEB) granted TransCanada a 30-day suspension on September 8, after the company said it needed to review the impact of new assessment criteria that would consider the C$15.7 billion ($12.58 billion) project's indirect greenhouse gas contributions. That pipeline, however, is now locked up in lawsuits, and the B.C. government is intervening in challenges to its approval.

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.

Condolences flowed in from across the country, including New Brunswick premier Brian Gallant, Alberta premier Rachel Notley and federal Conservative House leader Lisa Raitt, who called the decision "disastrous".

The National Energy Board ended up suspending the hearings into the proposed 4,500-kilometre pipeline and selecting a new panel. TransCanada cancelled that project on Thursday amid regulatory hurdles and weaker oil prices. The reason for Energy East's cancellation is simple: "New pipelines can't be justified during a time of declining investment in the tar sands, North American pipeline overcapacity, and an unstoppable transition to renewable energy".

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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.

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