TransCanada Changes Energy East Plans Over Beluga Whale Concerns

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 [e-mail]

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