Keystone XL developer cancels two major Canadian pipeline projects

Keystone XL developer cancels two major Canadian pipeline projects

The developer of the Keystone XL pipeline has nixed its plan to build two other pipeline projects in eastern Canada.

TransCanada Corp. announced Thursday that it would not build its proposed Energy East pipeline, which was designed to carry more than one million barrels of oil per day from Alberta and Saskatchewan to points east. The company also said it abandoned its Eastern Mainline gas pipeline project.  

The company said the decision came after a “careful review of changed circumstances.”


“We appreciate and are thankful for the support of labor, business and manufacturing organizations, industry, our customers, Irving Oil, various governments, and the approximately 200 municipalities who passed resolutions in favor of the projects,” Russ Girlig, the company’s president and CEO, said in a statement.

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

TransCanada first proposed the new pipeline projects in 2013. But the company said last month that it might be forced to abandon the Energy East proposal after energy regulators in Canada expanded their assessment of the project, including the impact of its indirect greenhouse gas emissions and other risks associated with the pipeline.

President Trump in March issued a presidential permit for TransCanada’s proposed Keystone XL pipeline, which would cut through the United States. That project still faces regulatory hurdles in Nebraska and other states, as well as lawsuits from activist opponents.