UPDATE 3-TransCanada to build only one Energy East oil export terminal

Thu Nov 5, 2015 2:52pm EST
 
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(Adds comments from Canadian Natural executive and Quebec Premier Philippe Couillard)

By Nia Williams

CALGARY, Alberta Nov 5 (Reuters) - TransCanada Corp said on Thursday it has scrapped plans to build a port in Quebec and will have only one crude oil export terminal for its proposed Energy East pipeline, a possible setback for the controversial project.

The move comes days after TransCanada asked the U.S. State Department to pause its review of the company's long-delayed Keystone XL pipeline, a request that Washington turned down amid speculation President Barack Obama will ultimately reject the pipeline.

Like Keystone, Energy East is opposed by environmentalists who want to stop expansion of the oil sands industry. The 1.1 million-barrel-per-day project is intended to carry crude from Alberta across Canada to New Brunswick, where it could be shipped abroad.

Calgary-based TransCanada had originally planned to build two ports for shipping crude overseas by tanker - one at the pipeline terminus in Saint John, New Brunswick, and the other in Cacouna, Quebec.

However, the company abandoned the Cacouna location in April after environmentalists raised concerns about the impact on beluga whales in the St. Lawrence River. It had been looking at the feasibility of other Quebec locations.

Quebec Premier Philippe Couillard said the absence of a Quebec terminal made it harder to calculate the economic benefits, one of its criteria for supporting the pipeline. But his spokesman later noted the province has not decided on the project because it has not seen the final proposal.

CIBC World Markets analyst Paul Lechem said scrapping the second export terminal did not affect the financial viability of Energy East as Saint John had always been intended as the primary port.   Continued...