TransCanada Ends Bid to Build Energy East Oil Pipeline
- Oil line would have linked landlocked Alberta to east coast
- Company does not expect to recover costs from third-parties
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TransCanada Corp. has scrapped its Energy East Pipeline and Eastern Mainline projects, oil and natural gas conduits that have faced regulatory hurdles in Canada and stiff opposition from environmental groups.
As a result of the decision, TransCanada expects an estimated C$1 billion ($801 million) after-tax, non-cash charge to be recorded in the fourth quarter, the company said in a statement Thursday. Because regulators failed to reach a decision on the projects, TransCanada expects “no recoveries of costs from third parties.” The Energy East link to Canada’s Atlantic Coast carried a C$15.7 billion price tag.