The decision to abandon the oil and natural gas conduits will result in a $1 billion after-tax non-cash charge to be incurred in the fourth quarter, TransCanada said. Canadian regulators didn't reach a decision on the projects, so the company expects "no recoveries of costs from third parties."
TransCanada called for a 30-day suspension of the projects last month, hoping for time to review environmental assessment factors. In a statement, TransCanada said, "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 Easter Mainline applications."
Energy East would have moved about 1.1 million barrels per day of oil from Alberta and Saskatchewan to eastern Canadian refineries. Eastern Mainline would have added a new gas pipeline and more compression facilities to an existing system in Ontario. The last estimate of the projects' cost was $15.7 billion.
TransCanada shares listed in New York traded down 0.61% to $48.54 just after the market open Thursday.
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