TransCanada cancels Energy East pipeline project

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"The loss of this major project means the loss of thousands of jobs and billions of dollars for Canada, and will significantly impact our country's ability to access markets for our oil and gas", the Canadian Energy Pipeline Association (CEPA) said in a statement.

TransCanada made the announcement Thursday.

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.

While Energy East's collapse may cost Trudeau support in the traditionally conservative oil heartland of Alberta it is likely to prove popular in the eastern province of Quebec, which has far more parliamentary seats and where pipeline opposition from politicians and environmental groups had been stiff.

TransCanada pulled its application for Energy East once the National Energy Board (NEB) ruled that it would consider all greenhouse gas emissions resulting from the project.

As a result of its decision to end the projects, TransCanada said it is reviewing the project's 1.3 billion Canadian dollar ($1.04 billion) carrying value and expects to record an estimated $1 billion impairment charge in its fourth quarter.

"The economic benefits of the Energy East pipeline have never been added to our economic and fiscal projections", he said.

Energy East would have carried 1.1-million barrels of crude oil a day from Alberta to Saint John, New Brunswick.

The decision to abandon the project comes amid low oil prices and an expected slow-down in oilsands production.

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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.

President and CEO Russ Girling said Thursday morning in Calgary that the company will inform Canada's pipeline regulator, the National Energy Board (or NEB), and Quebec's Environment Department that "we will no longer be proceeding" with the projects.

It was not immediately clear whether the project's opponents would be able to hold up Energy East as an example to the court.

Wall also attacked former Liberal Cabinet minister and Montreal mayor Denis Coderre for applauding the pipeline's cancellation. "That is neither fair nor appropriate; we ought not to ask a proponent to take a multi-billion gamble on a process that changes simply because a dog barked on Upper Teacup Road", Canada's Building Trades Union chief operating officer Robert Blakely said in a release.

Jean, one of two UCP MLAs in the oil heartland of Fort McMurray, also pointed his finger at Notley and the provincial government.

Calgary-based TransCanada (TSX:TRP) had announced last month that it was suspending its efforts to get regulatory approvals for the mega projects.

RBC Capital Markets analyst Robert Kwan said in a report the news was "neutral" from an investor point of view because of market skepticism that the project would proceed.

Proponents said it presented an opportunity to wean Canada off foreign oil as refineries in Quebec and New Brunswick rely mostly on imports.

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