TransCanada Corp said it expects to take a C$1 billion charge in the current quarter after deciding to abandon its Energy East and Eastern Mainline pipeline projects, after intense scrutiny by Canada's energy regulator.
The termination comes after the National Energy Board (NEB) expanded the scope of its review of Energy East in August, saying it would consider the pipeline's indirect greenhouse gas contributions. Energy East's importance has somewhat diminished for TransCanada since U.S. President Donald Trump this year signed an order reviving the company's Keystone XL pipeline, which would run from Alberta's oil sands to U.S. refineries. TransCanada had said last month that it would have to abandon the Energy East project after the NEB's decision. The termination was the latest blow to a project that Canada's oil industry says is needed to bring oil sands crude to overseas markets and avoid deep discounts on Canadian barrels that eat into revenue for producers already struggling with low prices. "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," TransCanada said in a statement on Thursday. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)