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TransCanada Scraps Oil Pipeline Project To East Coast

TransCanada Ends Two Pipeline Projects, Citing 'Changed Circumstances'

CEPA also said that pipelines are the only viable way to get large amounts of oil and gas to market and the country will be missing out on a big opportunity with the loss of Energy East.

There was a bombshell announcement this morning from Calgary-based TransCanada Corporation. According to analysis from the group, Energy East would have added 236 million tons of additional greenhouse gas emissions every year.

Alberta Premier Rachel Notley says her government has always supported Energy East because of the new jobs, investments and markets it would create.

TransCanada's decision is also a blow to the ailing economy of New Brunswick province, where the pipeline would have terminated.

The project has opened deep rifts in political circles, with New Brunswick and Alberta premiers expressing disappointment Thursday and Quebec politicians like Montreal Mayor Denis Coderre celebrating its demise.

Watch below: Natural Resource Minister Jim Carr says the TransCanada decision to cancel the Energy East pipeline was not motivated by government policies, but rather changes in the markets and commodity prices.

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

Energy East would have given oil producers in Alberta and Saskatchewan, who are heavily dependent on buyers in the USA, another market for their crude by carrying about 1.1 million barrels a day to refineries and a marine-shipping terminal in eastern Canada. It says it will for the first time consider the public interest impact of upstream and downstream GHG emissions from potential increased production and consumption of oil resulting from the project.

Citing "changed circumstances" company President Russ Girling says they will be informing the National Energy Board of their plans to cancel the project. Energy East is yet another lesson about how Canada must make decisions on its energy future going forward.

"This project was so wrong and so unsafe, its hard to believe it was seriously contemplated", Gretchen Fitzgerald, national program director of environmental organization the Sierra Club, said.

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

The review process is over, but several legal challenges to the pipeline - including over whether the environmental review adequately considered climate impacts - have tied the project up in the courts.

September 9, 2016: The National Energy Board sidelines all three Energy East reviewers following complaints that two of them met privately with a TransCanada consultant the year before and discussed the proposed oil pipeline.

But environmental groups questioned the need for a pipeline they said was at odds with Canada's commitment to tackle climate change. "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.

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