Published: Fri, October 06, 2017
Medicine | By Melba Vasquez on Defeat of Energy East Tar Sands Pipeline on Defeat of Energy East Tar Sands Pipeline

Energy East Pipeline Project cancellation is a huge setback for them, and for all Canadians, in particular to the province of New Brunswick who will be devastated by this announcement.

Pipelines in Western Canada, which holds the world's third-largest crude reserves largely in Alberta's oilsands, can carry about 3.3 million barrels of crude a day, according the the Canadian Association of Petroleum Producers, or CAPP.

In part because of its sheer length, Energy East would have likely had higher shipping costs than both the Keystone XL and Trans Mountain pipelines.

Energy East would have given oil producers in Alberta and Saskatchewan, who are heavily dependent on buyers in the US, 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.

Heurtel asked TransCanada Pipelines to supply a report on the environmental impact of Energy East in Quebec.

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As a nation building project, the Energy East Pipeline would provide energy independence for Canada and would not only have allowed Canada to get market access for its natural resources, but also curb the importation and use of foreign oil by Canadian customers.

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.

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.

If you go with the highway analogy, there was questions of whether another 12-line highway was really needed, and also of whether motorists would have used it, given the toll prices, said Leach.

"We are deeply disappointed by the recent decision from TransCanada", Notley said in a statement.

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New Brunswick Premier Brian Gallant, another longtime champion of the Energy East project, joined Notley in expressing disappointment with TransCanada's decision.

"The abandonment of the Energy East project is a major victory for the municipal world", Coderre wrote. "Nothing has changed in the government's decision-making process".

TransCanada's decision to cancel plans for its $15.7-billion Energy East pipeline has provoked a predictable storm.

"We believed if TransCanada continued with the process, the project would be approved".

That's because the business case to build the pipeline has always been looking less than clear, he noted.

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Oil prices have roughly halved since 2014. He said his province wasn't banking on Energy East - but having certainly wouldn't have hurt. "But our governments must also step up to ensure that our transition off of fossil fuels to the safe and renewable energy future is just and managed".

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