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

Trevor Jackson
October 6, 2017

Alberta Premier Rachel Notley says Energy East - which would have carried Alberta oil to tidewater - would have benefited all of Canada with new jobs, investment, energy security and the ability to displace imported oil.

On 7 September the Alberta-based company asked the National Energy Board (NEB) for a 30-day suspension of the two project applications. After President Donald Trump made headlines for reversing the Obama administration's decision not to permit the Keystone XL pipeline, the company suggested in July that it might not even go through with the project, which would bring tar sands oil south from Alberta through Montana, South Dakota, and Nebraska.

Notley says the decision puts new emphasis on the Trans Mountain pipeline project to British Columbia and called on the NEB to "send a clear message" on regulation for future energy infrastructure projects.

TransCanada Corp abandoned construction of its Energy East pipeline on Thursday, taking a C$1 billion ($798 million) non-cash charge and handing environmental groups a major victory in efforts to hamper Canadian oil development.

"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".

As Energy East supporters lamented the loss of jobs and revenue, Indigenous opponents, environmental activists and a number of Quebec politicians celebrated.

The largest pipeline proposal in Canadian history met a bitter end this week, leaving behind a trail of delighted environmentalists, deeply disappointed industry stakeholders, and carefully measured government responses.

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TransCanada's Eastern Mainline project, also cancelled this week, would have added 279 kilometres of new natural gas pipeline facilities and nine compression units to the Canadian Mainline system used to deliver natural gas in Ontario and Quebec. "With the world quickly turning to renewable energy, there's no need for more outdated fossil fuel projects". Companies are not eager to invest in expensive tar sands projects unless the price of oil comes back up.

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

Irving Oil has worked with TransCanada on this project since it was first announced in 2013.

"Energy, pipeline and climate issues have been among the most highly charged political debates in Canada for several years", said Abacus chairman Bruce Anderson. "Nothing has changed in the government's decision-making process".

Carr shrugged off Raitt's criticism, saying there are signs of growth in the energy sector despite "market challenges" posed by sagging oil prices. "We accepted the reversal of Enbridge's Line 9B (pipeline through Montreal), but we ensured there were measures in place to follow up and protect the community".

The company suspended its application on Sep.

Other reports by TheDailyFarc

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