TransCanada postponed the building of its Energy East pipeline project and decided against building a marine and associated tank terminal in Cacouna, Québec. The company said alternative terminal options are under review, and that Québec and New Brunswick refineries would continue to be connected directly to Energy East.
“This decision is the result of the recommended change in status of the Beluga whales to endangered and ongoing discussions we have had with communities and key stakeholders,” said Russ Girling, TransCanada’s president and CEO. “Our goal has been to strike a balance between TransCanada’s commitment to minimizing environmental impacts and the imperative to build modern infrastructure to safely transport the energy Canadians need and consume every day.”
As a result of discussions with stakeholders emergency response plans, developed with local agencies along the pipeline route, will be brought to the National Energy Board (NEB) earlier in the process than usual.
Any amendments to the applications for Energy East reflecting the outcome of that evaluation are expected to be filed with the NEB in the fourth quarter. The result of this alteration to the project scope and further refinement of the project schedule is expected to result in an in service date of 2020.
The 1.1 MMbpd Energy East project has secured about 1 MMbpd of firm, long-term contracts. The $12 billion project is an important element of TransCanada’s $46 billion of commercially secured growth projects.
The project will support 14,000 direct and indirect full-time jobs across Canada during development and construction, and generate more than $7 billion in additional tax revenues in the first 20 years of operation for local, provincial and federal governments, along with billions of dollars in economic activity across the country, TransCanada said.