The industry association said it was "extremely disappointed" with Thursday's announcement.
In late August, the National Energy Board - an independent regulatory agency that oversees global and inter-provincial oil and gas pipelines - announced it would consider upstream and downstream greenhouse gas emissions in determining whether the Energy East pipeline was in the national interest.
With that avenue closed off, Western Canada's oil industry is now counting on Trans Mountain project to help carry crude to the Pacific Coast, where it would be shipped to markets in Asia, as well as TransCanada's long-delayed Keystone XL pipeline, which would move more Alberta oil to refineries along the U.S. Gulf Coast. It was supported by the governments of New Brunswick, Saskatchewan and Alberta, but opposed by Quebec.
The Energy East Pipeline, was planned to go underneath Trout Lake through a natural gas pipeline. The project was cancelled Thurs.
Environmental groups welcomed the decision to scrap a pipeline they said was at odds with Canada's commitment to reducing greenhouse gas emissions. "Nonetheless, this is an unfortunate outcome for Canadians".
TransCanada President and Chief Executive Officer Russ Girling delivered the company's verdict on the project in a statement released Thursday morning.
"The federal government and the NEB keep moving the goal post, with the latest in terms of adding in the upstream and downstream emissions to the project itself with no clarity around that", he said.
The $15B project would have carried crude oil from Alberta to refineries in the Maritimes.
The B.C. government doesn't share her view, however, and is now part of a court challenge against Trans Mountain being heard this week.
"Saint John is not a one-project town. We are going to continue to look for other export markets for energy, which would allow us to increase our generation, and we are going to keep an eye on world market conditions".
"Our government would have used the same process to evaluate the Energy East pipeline project", he said. As the proposal was cancelled on Thurs. Like Northern Gateway, Keystone XL, Enbridge's Line 3, and Kinder Morgan before it, this pipeline generated unprecedented grassroots opposition from Indigenous peoples, and front-line communities across the continent aiming to protect their climate, their water, and their rights.
"This is a sad day for Canada". It was not immediately clear whether the project's opponents would be able to hold up Energy East as an example to the court. "We have to remain vigilant, look at what happens around us and react whenever called on".
Analysts said the decision to abandon it was already priced into the stock.
The Honourable Jim Carr, Minister of Natural Resources says in a statement that the decision to pull out was business-related.
Calgary-based TransCanada had announced last month that it was suspending its efforts to get regulatory approvals for the mega projects.
Suncor Energy Inc. (TSX:SU), Canada's largest oil, gas and refining company by market capitalization, had hoped Energy East would allow it to replace US and offshore oil at its 137,000-barrel-per-day Montreal refinery, said spokeswoman Sneh Seetal.
"Again it shows how local governments can make a difference", Coderre explained.
Notley said the project would have been a nation-building project benefiting all of Canada through new jobs, investment, energy security and replacing imported oil brought from the US and elsewhere.
"The fossil fuel era is ending".