IT&Software

Irving Oil responds to TransCanada's decision to terminate Energy East pipeline project

Irving Oil responds to TransCanada's decision to terminate Energy East pipeline project

The Energy East Pipeline, was planned to go underneath Trout Lake through a natural gas pipeline.

"I could be at the grocery store, I could be at the coffee shop, and people would constantly stop or say to me "protect our drinking water".

TransCanada (TRP.TO) said it is terminating plans for the Energy East pipeline "after careful review of changed circumstances".

"What we are seeing in our numbers now is an evolution of opinion: concerns about climate change have deepened, and belief that the world is going to transition away from oil has grown".

In late August, the National Energy Board - an independent regulatory agency that oversees global and inter-provincial oil and gas pipelines - announced it would consider upstream and downstream greenhouse gas emissions in determining whether the Energy East pipeline was in the national interest.

New Brunswick Premier Brian Gallant said in a statement Thursday that he believed TransCanada's decision was based on market conditions, but McLellan disagreed, saying oil companies have learned over the last three years to make a profit at lower prices.

The Canadian Energy Pipeline Association says it is "extremely disappointed with the decision".

October 29, 2014: A report released by environmental groups questions whether Energy East is necessary to supplant Eastern Canada's oil imports from the foreign suppliers frequently mentioned by TransCanada. It was first proposed in 2013. "While this is not the result we hoped for, we will continue to drive our business forward to ensure a positive and prosperous future for our region, our communities and our company".

"It is a good thing that Mr. Coderre's hypocrisy needs no pipeline for conveyance, for it would need to be very large and could never get approved for construction", he said.

According to the Natural Resources Defense Council, the US$15.7-billion pipeline would have transported 1.1 million barrels per day of mostly tar sands oil from Alberta to St. John and would bring a significant increase in carbon pollution-equivalent to the annual emissions of as many as 54 million passenger vehicles-and lock in high-carbon infrastructure expected to operate for at least 50 years.

Of the cancellation, Green Party leader Elizabeth May added: "Today's announcement from TransCanada to cancel plans for the Energy East pipeline will be celebrated by many Canadians - those who understand that transporting toxic diluted bitumen (dilbit) across pristine areas, and that exporting bitumen to offshore refineries, is a poor business model".

"The abandonment of the Energy East project is a major victory for the municipal world", Coderre wrote.

Supporters of Energy East said the pipeline was necessary to expand Alberta's markets and decrease its dependency on shipments to the United States.

The Opposition Conservatives are tearing a strip off the Liberal government over TransCanada's decision to cancel the Energy East pipeline project.

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.