TransCanada abandons plans for its Energy East Pipeline

By zaymalz malz

TransCanada has announced that it will not proceed with the construction its Energy East Pipeline.

The project proposed the building of a further 1,500km of pipeline, in addition to converting the existing 3000km pipeline, enabling it to carry oil instead of natural gas.

TransCanada will take a $1bn charge in its next quarterly results, however, had the project gone ahead it would have cost the company $16bn.

See also:

"We appreciate and are thankful for the support of labour, business and manufacturing organizations, industry, our customers, Irving Oil, various governments, and the approximately 200 municipalities who passed resolutions in favour of the projects," said Russ Girling, CEO of the Calgary-based energy company.

"Most of all, we thank Canadians across the country who contributed towards the development of these initiatives."

TransCanada ultimately struggled to get the project up and running for a number of reasons. Having first been proposed back in 2013 when oil prices were at $100 a barrel, the pipeline has since come into doubt largely due to both changing economics and increasing regulatory hurdles to overcome.

Just last month, the firm suspended making a final decision on going ahead with the pipeline due to a stricter review process being implemented by the National Energy Board on such projects.

Had it been completed, pipeline would have shipped 1.1mn barrels of oil per day from western Canada to facilities near key trading ports on the Atlantic Coast.


Featured Articles

Possibilities endless as generative AI takes centre stage

Generative AI is already playing a pivotal role in the way companies are run; the only question is how quickly it can be integrated into everyday tasks

Why companies should be preparing for scope 3 reporting

With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials

People over profit is steering business in a new direction

An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing

Databricks: The phenomenal rise of a data and AI heavyweight

Technology & AI

Business Chief expands portfolio with new look and coverage

Leadership & Strategy

Google at 25: The remarkable rise of a technology colossus

Technology & AI