Energy East was a proposed 4,600-kilometre pipeline by Calgary-based energy corporation TransCanada.

Energy East and East Mainline was a proposed combined 4,500-kilometre pipeline project by Calgary-based energy corporation Trans-Canada. The company announced today the project has been cancelled.
Photo Credit: Sue Ogrocki/Associated Press)

Controversial major pipeline project cancelled

In an announcement today, the CEO of Trans-Canada pipelines said the so-called “energy east” and “eastern mainline” pipeline projects have been called off.

The project would have seen a pipeline stretching from the oil sands project in Alberta and oil from Saskatchewan some 4,500 kilometres eastward across Canada to eastern refineries in Montreal and to a maritime terminal in the province of New Brunswick.

TransCanada Corp.’s proposed pipeline project, which would carry 1.1 million barrels a day, runs from Hardisty, Alta., to an export terminal in Saint John, N.B.
TransCanada Corp.’s proposed pipeline project, which would carry 1.1 million barrels a day, runs from Hardisty, Alta., to an export terminal in Saint John, N.B. © Canadian Press

It would have carried over 1 million barrels of crude per day along 1,500 kilometres of new pipeline, and the conversion of 3,000 kilometres of existing natural gas pipeline in order to carry the crude. The plan was that the western Canadian oil would displace Canadian purchases of foreign oil.

The project was divisive almost immediately with environmental groups and  some communities along its path saying there was too great a risk of damaging oil spills and other accidents, and that it was still promoting a “carbon” culture in a warming world.

Protesters gathered Aug 2016 outside the building where NEB hearings on the proposed Energy East pipeline were scheduled to take place in downtown Montreal.
Protesters gathered Aug 2016 outside the building where NEB hearings on the proposed Energy East pipeline were scheduled to take place in downtown Montreal. The project divided Canadians over issues of the environment, versus jobs and the economy © Charles Contant/Radio-Canada

Other communities and provincial leaders were in favour for the potential thousands of jobs and multi-billion dollar boost to local, provincial and national economies that the $15-billion dollar project would bring.

The  cancellation was not a complete surprise as the Calgary-based Trans-Canada had asked in September for a 30-day suspension of the project while it reviewed new changes to the regulatory and approval process for the project.

TransCanada CEO Russ Girling speaks about plans for the Energy East pipeline in August 2013. On Thursday, the company said it will continue to advance its other projects while pausing Energy East.
TransCanada CEO Russ Girling speaks about plans for the Energy East pipeline in August 2013. On Thursday, the company said it will continue to advance its other projects while Energy East is cancelled © Jeff McIntosh/Canadian Press

New regulations by the National Energy Board which would approve the pipeline indicated that they would now add a review “upstream and downstream greenhouse gas emissions “ to the previous requirements.

The project had divided Canadians. Reaction to the cancellation notice is predictable, those in favour of the project express disappointment at the job losses, while those opposed are pleased.
The project had divided Canadians. Reaction to the cancellation notice is predictable, those in favour of the project express disappointment at the job losses, while those opposed are pleased. © CBC news

Another factor may have been that crude prices are now about half of what they were when the project began.

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