TransCanada Corp. on Thursday announced a significant change to
the scope of its proposed Energy East project, pushing the 12
billion Canadian dollar ($9.5 billion) pipeline's expected
in-service date to 2020.
Calgary-based TransCanada said it has decided not to build a
marine terminal and associated tank terminals at Cacouna, Quebec,
due to concerns about Beluga whales in the area. It said it is
reviewing potential alternatives in Quebec, and added that
refineries in that province and neighboring New Brunswick would
continue to be connected directly to Energy East.
The company had previously pegged Energy East's in-service date
at late 2018.
"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," Chief Executive Russ
Girling said in a statement. "We have listened and our decision
reflects that."
The 1.1 million barrel-a-day Energy East pipeline has been
positioned in Canada as a nation-building project that would bring
benefits to eastern Canadian refineries while helping to address
Alberta crude producers" challenges in getting their product to
market. It would also open a new route to ship heavy crude by
tanker to refineries on the Gulf Coast.
Another TransCanada project, Keystone XL, has been in limbo for
several years amid a debate in the U.S. over its environmental
impact.
TransCanada also said Thursday that ongoing talks with Energy
East stakeholders pointed to the issue of emergency response plans,
which are developed with local agencies along the pipeline route.
It said that, to address concerns, the development and submission
of these emergency response plans will be brought to Canada's
National Energy Board earlier in the regulatory process.
Write to Carolyn King at carolyn.m.king@wsj.com
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