After climate crackdown, TransCanada scraps major tar sands pipeline

Energy East pipeline

As a result of the decision, TransCanada expects an estimated $1 billion after-tax, non-cash charge to be recorded in the fourth quarter, the company said in a statement Thursday.

She pointed out that they could build the KeystoneXL pipeline to delivery Canadian oil to the US gulf coast but the company ultimately decided the regulatory hurdles were too significant for a pipeline to service Canadian refineries.

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.

"Obviously it's not great that they've canceled the project, but overall I think it was anticipated", said Manash Goswami, a Portfolio Manager with First Asset Investment Management Inc.

"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. The company warned then that it could cancel the proposed 2,800 mile oil pipeline from Hardisty, Alberta, to Saint John, New Brunswick, which would have been most expensive project in TransCanada's history.

The National Energy Board must let the industry know how future project reviews will be conducted so investors can have confidence in the industry, she said. "And it may well be that they looked at their capital plan and they looked at their ability to execute on two major projects simultaneously and shelved one for a while in favour of the one that's more likely to move forward quickly. We are going to continue to look for other export markets for energy, which would allow us to increase our generation, and we are going to keep an eye on world market conditions".

"This is an important day in the fight against climate change in Canada".

When it was announced in 2013, Energy East was hailed as a nation-building project that would unlock Canadian exports and boost economic growth along its route.

Aurore Fauret, Tar Sands Campaign co-ordinator at 350.org said the decision is proof that climate action and pipelines don't mix, and that organized resistance can prevail.

Energy Minister Jim Carr defended the government by citing the green lights for Trans Mountain and Line 3, and insisting that the TransCanada decision was a "business decision" influenced by the state of commodity prices.

"His actions and his government's actions may well have some westerners wondering if this country really values western Canada, the resources we have, and the things we do to contribute to the national economy and to quality of life for all".

There was a bombshell announcement this morning from Calgary-based TransCanada Corporation. "Make no mistake, other companies' decisions to invest in Canada will be informed by this debacle". "But when you have something that represents 26 football fields and they want to open wetlands, and install pipelines everywhere - that's unacceptable".

Since Keystone XL was proposed, oil prices have plummeted.

Duplisea agreed that the level of uncertainty made it impossible for the company to proceed with the application. "Governments need to step up with a plan to assist oil sands workers in transitioning into clean energy jobs".

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