TransCanada kills controversial Energy East Pipeline project

TransCanada kills controversial Energy East Pipeline project

neb energy east
TransCanada President and CEO Russ Girling announces the new Energy East Pipeline during a news conference in Calgary, in this August 1, 2013 file photo.

TODD KOROL/REUTERS

OCTOBER 5, 2017

TransCanada Corp. is killing its controversial Energy East pipeline project.

Also dead is its Eastern Mainline proposal, the company said Thursday.

“After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications,” chief executive officer Russ Girling said in a statement.

“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.”

TransCanada added it will focus on its $24-billion capital spending program, which should boost earnings and cash flow, and support dividend increases of 8 to 10 per cent a year through 2020.

It will take a hit in its fourth-quarter earnings.

“As a result of its decision not to proceed with the proposed projects, TransCanada is reviewing its approximate $1.3-billion carrying value, including allowance for funds used during construction (AFUDC) capitalized since inception and expects an estimated $1-billion after-tax non-cash charge will be recorded in the company’s fourth quarter results,” it said.

“TransCanada stopped capitalizing AFUDC on the project effective Aug. 23, 2017, as disclosed on Sept. 7, 2017. In light of the project’s inability to reach a regulatory decision, no recoveries of costs from third parties are expected.

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on October 5, 2017, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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