TransCanada Scraps Quebec Oil Export Terminal Over Whale Danger

CALGARY, Alberta, April 2 (Reuters) – TransCanada Corp , the corporate behind the controversial Keystone XL pipeline, is scrapping plans for a Quebec oil-export terminal due to hazard to whales within the St. Lawrence River, a transfer that could be a victory for environmentalists and which delays the corporate’s C$12 billion ($9.5 billion) Energy East pipeline challenge.

The firm mentioned it now plans to finish the 1.1 million barrel per day Energy East pipeline in 2020, as an alternative of late 2018, because it rejigs regulatory filings.

TransCanada halted work on the Cacouna export terminal on the south shore of the St. Lawrence River, close to Riviere du Loup, Quebec, in December after specialists mentioned it might hurt beluga whales within the river. They mentioned the whales needs to be federally protected as an endangered species.

The firm mentioned it’s now “evaluating other options” for a terminal in Quebec. Refineries in Quebec and New Brunswick would nonetheless be related to the pipeline.

“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,” TransCanada Chief Executive Russ Girling mentioned in an announcement.

Cacouna was certainly one of two export terminals deliberate for the 4,600-kilometer (2,858-mile) line, with the second to be constructed on the pipeline’s terminus in Saint John, New Brunswick.

The pipeline, which might take crude from the Alberta oil sands to Eastern Canada and overseas, has but to face the form of sustained opposition that has arisen within the United States to the Keystone XL challenge. Environmentalists, nonetheless, mentioned the Cacouna choice may agency up resistance to the complete challenge.

“Yes it’s a win, but ultimately the entire project needs to be scrapped,” mentioned Andrea Harden-Donahue, vitality and local weather campaigner on the Council of Canadians

“I think we’re going to see more municipalities taking a stand on this, more landowners. I think (aboriginal group) opposition along the route is strong and growing.”

The authorities of French-speaking Quebec has maintained the challenge should profit the province economically if the federal government is to again it.

Provincial Environment Minister David Heurtel advised CBC News he’s nonetheless evaluating the challenge. “We still need to see the full extent of the project before we can evaluate the economic impact of the project,” he mentioned.

TransCanada shares rose 1.3 % to C$54.44 on the Toronto Stock Exchange on Thursday.

($1=$1.26 Canadian) (Reporting by Scott Haggett in Calgary, Julie Gordon in Toronto and Tanvi Mehta in Bengaluru; Editing by Peter Galloway)