TransCanada Scraps East Coast Export Terminal

TransCanada Corp scrapped plans to build a port in Quebec and said on Thursday it will have only one export terminal for its Energy East pipeline project.

The 1.1 million barrel-per-day Energy East project will carry crude from Alberta across Canada to New Brunswick.

Calgary-based TransCanada had originally planned to build two ports for shipping crude overseas - one at the pipeline terminus in St John, New Brunswick, and the other in Cacouna, Quebec.

However, the company abandoned the Cacouna location in April after environmentalists raised concerns about the impact on beluga whales in the St. Lawrence River. Since then, the company had been looking at the feasibility of other locations in Quebec.

TransCanada said on Thursday it had reached the decision after listening to local communities, stakeholders and customers, and it will be amending the Energy East project application before the National Energy Board.

"Today's announcement demonstrates our dedication to listening and delivering a vital infrastructure project that will provide significant economic benefits to all provinces along the pipeline's route," said TransCanada chief executive Russ Girling.

Earlier this week Girling said the company was "very close" to reaching a decision on the second export terminal.

Energy East will still supply crude oil to the Suncor Energy and Valero Energy refineries in Quebec. (Editing by Jeffrey Benkoe and Frances Kerry)