TransCanada confirms Cacouna port dropped over beluga concerns

After months of protests from environmentalists andthe urging of Quebec's premier,TransCanadahas confirmed it will not build a port inCacouna, Que. to serve the Energy East pipeline.

The company is"altering the scope" of the project and is still reviewing alternative options in Quebec, according to a news release issued Thursday.

The move means the project won't be completeduntil 2020.

• Energy East pipeline completion date pushed back to 2020
• Belugas should be on endangered species list, government told
• St. Lawrence belugas threatened by pipeline plans

The company wanted to buildthe terminal inCacounaas part of its 4,600-kilometre,$12-billion pipeline, which would carry 1.1 million barrels per day ofoilsandscrude from Alberta to refineries onthe east coast for export overseas.

RussGirling, president and CEO ofTransCanada, said the decision to drop theCacounaterminal came following a governmentrecommendation to recognizebeluga whales as anendangeredspecies.

Ongoing discussions with the authorities and other parties alsocontributed, he said.

"Our goal has been to strike a balance between TransCanada's commitment to minimizing environmental impacts and the imperative to build modern infrastructure to safely transport the energy Canadians need and consume every day," he said in the news release.

A federal government wildlife committee concluded late last year that thebeluga populationhad dwindled to 1,000 from a high of 10,000.

In December, Quebec premier PhilippeCouillardurged TransCanada to abandon its Cacouna plans in light of the committee findings. He said it would be difficult to sell the project atenvironmental hearings in Quebec.

The Quebec government imposed various conditions on TransCanada last fall for Energy East to be accepted.

The government told TransCanada it had to ensure the project was socially acceptable, conduct an environmental assessment and provide a plan that would guarantee emergency measures of a high standard.

It also wanted the company to assume full economic and environmental responsibility in the case of any leak.

There was also a stipulation the project had to generate economic benefits for Quebec,as a whole as well as respecting agreements with First Nations.

On Thursday, Environment MinisterDavidHeurtelsaid the province was still open to discussion.

"They'relooking at maybe other options in Quebec,"Heurtelsaid.

"So we'll see with the final project what are the economic impacts, but we still need to see the full extent of the project before we can evaluate theeconomicimpact of the project."

TransCanada has long argued the project would help support thousands of jobs across the country and generate billions of dollars in government tax revenues.