TransCanada has decided not to proceed with its proposed Energy East Pipeline and Eastern Mainline projects.
This follows a 30-day suspension by the company to allow it time to review changes announced by the National Energy Board regarding the list of issues and environmental assessment factors of the project.
TransCanada president and CEO Russ Girling says: '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.
'We appreciate and are thankful for the support of labour, business and manufacturing organisations, industry, our customers, Irving Oil, various governments, and the approximately 200 municipalities who passed resolutions in favour of the projects. Most of all, we thank Canadians across the country who contributed towards the development of these initiatives.
'We will continue to focus on our $24 billion near-term capital program, which is expected to generate growth in earnings and cash flow to support an expected annual dividend growth at the up end of an eight to 10% range through 2020.'
As a result of its decision not to proceed with the proposed projects, TnrasCanada is reviewing its approximate $1.3 billion carrying value, including allowance for funds used during construction capitalised since inception and expects an estimated $1 billion after-tax non-cash charge will be recorded in the company's fourth quarter results.
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