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TransCanada terminates Energy East project
06 October 2017, 12:24 | Rudolph Thomas
TransCanada pulls plug on Energy East pipeline.
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.
But the company said last month that it might be forced to abandon the Energy East proposal after energy regulators in Canada expanded their assessment of the project, including the impact of its indirect greenhouse gas emissions and other risks associated with the pipeline. Both projects are expected to be in service by 2019 to ease a pipeline shortage facing Canadian oil companies.
But the Canadian Chamber of Commerce called the decision to abandon the multi-billion dollar project a "serious blow to the Canadian economy", as it would have created thousands of jobs. Companies are not eager to invest in expensive tar sands projects unless the price of oil comes back up.
The pipeline was planned to deliver 1.1 million barrels per day of western Canadian crude to refineries in Quebec and Saint John as well as to an export terminal in New Brunswick on Canada'sAtlantic Coast. It was supported by the governments of New Brunswick, Saskatchewan and Alberta, but opposed by Quebec.
"The National Energy Board needs to send a clear message on what the future of project reviews look like in Canada", she said.
"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", said president and CEO Russ Girling in a statement released Thursday morning.
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. In a statement, he sought to console job-seeking constituents who were counting on the pipeline's approval.
"I'm not surprised but I was certainly disappointed", McLellan continued, adding that the pipeline project would have brought "hundreds of millions of dollars" in direct and indirect economic benefits to Saskatchewan over its lifetime.
Alberta Premier Rachel Notley said Thursday that now Energy East is dead, there is an even greater urgency in completing the Trans Mountain project to B.C.to diversify the industry's export markets beyond the United States. October 5, 2017, she called on the National Energy Board to send a "clear" message on how it intends to evaluate pipelines in the future. Like Northern Gateway, Keystone XL, Enbridge's Line 3, and Kinder Morgan before it, this pipeline generated unprecedented grassroots opposition from Indigenous peoples, and front-line communities across the continent aiming to protect their climate, their water, and their rights. It is not a good day for the federation.
Greenpeace and other environmental groups also claimed a victory for those who believed there was "no social value in the project" in a world fighting climate change.
"The fight goes on", he told National Observer.
"It definitely puts the leverage on the pipes that are on the docket to get through", said Carl Evans, an oil analyst at Genscape Inc.in Boulder, Colorado.
"Our government would have used the same process to evaluate the Energy East Pipeline project that saw the Trans Mountain expansion and Line 3 projects approved".
"The Trudeau government is going to have to take a real hard look at whether their own heavy-handedness with that policy also led to this decision". "But when you have something that represents 26 football fields and they want to open wetlands, and install pipelines everywhere - that's unacceptable".
August 19, 2015: TransCanada says concerns raised about Energy East in a report about the potential impact of the project on whales and some fisheries in the Bay of Fundy are unfounded.
"This was an investor decision that resulted from the low global price of oil".
The company suspended its application on Sep. Fossil fuel investment is becoming less viable while renewable energy investment increases exponentially.
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