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TransCanada is closing the book on its proposed Energy East pipeline, but the political fallout is just beginning.
On Thursday, the company announced it won't proceed with its Energy East pipeline and Eastern Mainline proposals.
The proposed Energy East project would have carried oil from Alberta and Saskatchewan across the country to be refined in New Brunswick. It would have added 1,500 kilometres worth of new oil pipelines to an existing network of more than 3,000 kilometres, which would have been converted from carrying natural gas, to carrying oil.
"Ultimately, it's not up to me to explain why TransCanada made this decision on the basis of what's in its interest. I respect that," he told reporters.
"Nothing has changed in the government's decision-making process."
Same process
In January 2016, the government announced that pipeline projects will face a new environmental assessment process, including a greenhouse gas emissions analysis.
Carr maintains the Liberals would have used the same process to evaluate the Energy East pipeline project that was used to green-light the Trans Mountain expansion — which is in a Federal Court of Appeal this week — and Line 3 projects back in November.
Politics News
Carr on Energy East
00:00 01:10
Carr on Energy East1:10
"The government of Canada stands firmly behind the energy sector as a source of good, middle-class jobs …. We are open for business."
New Brunswick Premier Brian Gallant said in a statement that the company's decision not to move forward is "not good news" for those who wanted to see the pipeline built, including his government.
'Everything that Justin Trudeau touches becomes a nightmare.' - Lisa Raitt, Conservative MP
Gallant said over the past few years he has spoken to "almost every member of the federal cabinet about the merits of the project" and had sent a letter to the prime minister after hearing that TransCanada was suspending its application.
"We believe it is clear that TransCanada is not proceeding with its application for the Energy East pipeline because recent changes to world market conditions and the price of oil have negatively impacted the viability of the project," said Gallant.
New Brunswick Premier Brian Gallant said he raised Energy East with the Liberal government when he was in Ottawa this week for the first ministers meeting. (Canadian Press)
"We believed if TransCanada continued with the process, the project would be approved. We still believe that."
Alberta Premier Rachel Notley called it an "unfortunate outcome for Canadians."
"The [National Energy Board] needs to send a clear message on what the future of project reviews look like in Canada," she said. "Investors need confidence, and we look forward to seeing that certainty in place soon."
A spokesperson for Saskatchewan Premier Brad Wall called the news "terrible" for the prairie province.
"We don't have access to international markets , the fastest growing markets in the world like China and India and the countries in the ASEAN region. That means we don't get the best price for our oil," said Kathy Young.
"More than $25 billion a year left on the table because we lack pipeline capacity."
'Onerous' regulations
Almost immediately the Conservatives came out swinging against Prime Minister Justin Trudeau's Liberal government for the cancellation.
Conservative deputy leader Lisa Raitt said in the middle of the game the Liberals added "onerous" regulations, creating an uneven playing field with foreign oil companies.
"Today's announcement is not the result of a sudden decision by TransCanada. Instead, today is a result of the disastrous energy policies promoted by Justin Trudeau and his failure to champion the Canadian energy sector," she said.
"Everything that Justin Trudeau touches becomes a nightmare."
"Trudeau's red tape kills pipeline along [with] jobs in Alberta, Quebec and Atlantic Canada. Saudi and Venezuelan oil dictators rejoice," tweeted shadow finance minister Pierre Poilievre.
"Canada will now continue to import foreign dictator oil into our refineries instead of Alberta oil, it's shameful," tweeted Brian Jean, who's running to be leader of the United Conservative Party in Alberta.
"A huge blow to our economic future, a huge win for dictator oil. The NEB clearly did Trudeau's bidding in jeopardizing this critical project," added his opponent Jason Kenney.
The reaction was different in Montreal where Mayor Denis Coderre called the abandonment "a major victory" for municipalities and Indigenous groups.
"I've been saying since day 1 they were arrogant and condescending," he said of TransCanada. "It was a bad project."
The mayor of Saint John, N.B., home to the refineries which hoped to process the oil from Energy East, shot back on Twitter.
"This was an opportunity for our country to come together and we failed. How would Mayor [Coderre ] feel if we blocked Bombardier or dumping in river?" wrote Don Darling.
TransCanada says it will take a $1-billion charge to write down the project on its books in its next quarterly results.
Last month, TransCanada was granted a 30-day suspension of its application so it could re-evaluate the viability of the pipeline, which would have carried 1.1 million barrels of crude oil a day from Alberta to Saint John.
The suspension came after the regulator, the National Energy Board, expanded its planned review of the project, saying it will assess its indirect contributions to upstream and downstream greenhouse gas emissions.
TransCanada isn't the only company to pull out of a major energy project this year. In July Pacific NorthWest LNG announced it was cancelling its plans to build a liquid natural gas liquefaction and export facility in Port Edward, B.C.
The company said it made the decision to cancel the $36-billion project after "a careful and total review of the project amid changes in market conditions."
On Thursday, the company announced it won't proceed with its Energy East pipeline and Eastern Mainline proposals.
The proposed Energy East project would have carried oil from Alberta and Saskatchewan across the country to be refined in New Brunswick. It would have added 1,500 kilometres worth of new oil pipelines to an existing network of more than 3,000 kilometres, which would have been converted from carrying natural gas, to carrying oil.
- TransCanada won't proceed with Energy East pipeline
- ANALYSIS: Why Keystone could be last big oil pipeline
- Quebec politicians hail demise of controversial pipeline
"Ultimately, it's not up to me to explain why TransCanada made this decision on the basis of what's in its interest. I respect that," he told reporters.
"Nothing has changed in the government's decision-making process."
Same process
In January 2016, the government announced that pipeline projects will face a new environmental assessment process, including a greenhouse gas emissions analysis.
Carr maintains the Liberals would have used the same process to evaluate the Energy East pipeline project that was used to green-light the Trans Mountain expansion — which is in a Federal Court of Appeal this week — and Line 3 projects back in November.
Politics News
Carr on Energy East
00:00 01:10
Carr on Energy East1:10
"The government of Canada stands firmly behind the energy sector as a source of good, middle-class jobs …. We are open for business."
New Brunswick Premier Brian Gallant said in a statement that the company's decision not to move forward is "not good news" for those who wanted to see the pipeline built, including his government.
'Everything that Justin Trudeau touches becomes a nightmare.' - Lisa Raitt, Conservative MP
Gallant said over the past few years he has spoken to "almost every member of the federal cabinet about the merits of the project" and had sent a letter to the prime minister after hearing that TransCanada was suspending its application.
"We believe it is clear that TransCanada is not proceeding with its application for the Energy East pipeline because recent changes to world market conditions and the price of oil have negatively impacted the viability of the project," said Gallant.
New Brunswick Premier Brian Gallant said he raised Energy East with the Liberal government when he was in Ottawa this week for the first ministers meeting. (Canadian Press)
"We believed if TransCanada continued with the process, the project would be approved. We still believe that."
Alberta Premier Rachel Notley called it an "unfortunate outcome for Canadians."
"The [National Energy Board] needs to send a clear message on what the future of project reviews look like in Canada," she said. "Investors need confidence, and we look forward to seeing that certainty in place soon."
A spokesperson for Saskatchewan Premier Brad Wall called the news "terrible" for the prairie province.
"We don't have access to international markets , the fastest growing markets in the world like China and India and the countries in the ASEAN region. That means we don't get the best price for our oil," said Kathy Young.
"More than $25 billion a year left on the table because we lack pipeline capacity."
'Onerous' regulations
Almost immediately the Conservatives came out swinging against Prime Minister Justin Trudeau's Liberal government for the cancellation.
Conservative deputy leader Lisa Raitt said in the middle of the game the Liberals added "onerous" regulations, creating an uneven playing field with foreign oil companies.
"Today's announcement is not the result of a sudden decision by TransCanada. Instead, today is a result of the disastrous energy policies promoted by Justin Trudeau and his failure to champion the Canadian energy sector," she said.
"Everything that Justin Trudeau touches becomes a nightmare."
"Trudeau's red tape kills pipeline along [with] jobs in Alberta, Quebec and Atlantic Canada. Saudi and Venezuelan oil dictators rejoice," tweeted shadow finance minister Pierre Poilievre.
"Canada will now continue to import foreign dictator oil into our refineries instead of Alberta oil, it's shameful," tweeted Brian Jean, who's running to be leader of the United Conservative Party in Alberta.
"A huge blow to our economic future, a huge win for dictator oil. The NEB clearly did Trudeau's bidding in jeopardizing this critical project," added his opponent Jason Kenney.
The reaction was different in Montreal where Mayor Denis Coderre called the abandonment "a major victory" for municipalities and Indigenous groups.
"I've been saying since day 1 they were arrogant and condescending," he said of TransCanada. "It was a bad project."
The mayor of Saint John, N.B., home to the refineries which hoped to process the oil from Energy East, shot back on Twitter.
"This was an opportunity for our country to come together and we failed. How would Mayor [Coderre ] feel if we blocked Bombardier or dumping in river?" wrote Don Darling.
TransCanada says it will take a $1-billion charge to write down the project on its books in its next quarterly results.
Last month, TransCanada was granted a 30-day suspension of its application so it could re-evaluate the viability of the pipeline, which would have carried 1.1 million barrels of crude oil a day from Alberta to Saint John.
The suspension came after the regulator, the National Energy Board, expanded its planned review of the project, saying it will assess its indirect contributions to upstream and downstream greenhouse gas emissions.
TransCanada isn't the only company to pull out of a major energy project this year. In July Pacific NorthWest LNG announced it was cancelling its plans to build a liquid natural gas liquefaction and export facility in Port Edward, B.C.
The company said it made the decision to cancel the $36-billion project after "a careful and total review of the project amid changes in market conditions."
