TransCanada has decided to cancel its controversial Energy East Pipeline. The made the announcement through a short statement on their website citing “regulatory changes.”
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 Eastern Mainline applications,” CEO Russ Girling said in a statement.
The proposed project was supposed to carry approximately 1 million barrels/ day from Saskatchewan and Alberta to refineries in New Brunswick and Quebec. The route would have added 1500 km of pipeline.
Kirling continued giving his thanks for the support of the business community. “We appreciate and are thankful for the support of labour, business and manufacturing organizations, industry, our customers, Irving Oil, various governments, and the approximate 200 municipalities who passed resolutions in favour of the projects. Energy East would have brought 14,000 direct, and indirect jobs.
Swift Reaction from Dias, and McKenna
UNIFOR leader Jerry Dias says the project’s cancellation is a sign of the Energy Board’s flaws. “The National Energy Board’s inability to secure this project only underscores how ineffectual it has become,” he said in a statement. His union supported the project.
Former New Brunswick Premier Frank McKenna told BNN he thought TransCanada wasn’t entirely to blame. “TransCanada has spent a huge amount of money on this project, and I think they looked at the idea of spending huge amounts- and we’re talking close to $1 billion- into the future without any certainty at all that they could ever get through the political quagmire that’s been created in front of them,” he said. The pipeline project was worth $15.7 billion.
Deputy Conservative Leader Lisa Raitt went after the Trudeau government’s energy policies. “Today is the result of disastrous energy policies promoted by Justin Trudeau, and his failure to champion the Canadian energy sector,” she said according to media reports. The regulations referred to by Raitt would give exporters an advantage by forcing Canadian companies to different standards unenforced by other countries.