Keystone developer delays alternative pipeline

The company behind Keystone XL is delaying plans to build an alternative pipeline to export oil sands from Canada.

TransCanada Corp. said Energy East will now be operational in 2020, two years after it had originally planned.

{mosads}The company is also scrapping a controversial terminal on the Saint Lawrence River in Quebec that would have allowed oil from Energy East to be exported and shipped abroad.

Energy East was planned as an alternative way to get oil sands out of the country as the United States government has waited more than six years to decide whether Keystone should be built.

TransCanada said it decided to scrap the Quebec terminal, which resulted in the delay, because it is near a habitat for beluga whales, which may soon be protected as an endangered species.

“We have always said regarding the beluga whale and other species that if the project presented a material impact, we would be prepared to adjust it in order to eliminate or mitigate that impact, just like we have done in many instances since planning began two years ago,” TransCanada said on its website.

The company added that the project changes were not caused by “well-funded groups” that oppose the pipeline project on environmental grounds.

Energy East is projected to cost $12 billion. It would involve converting a natural gas pipeline for oil use and building a new line through Quebec and New Brunswick to bring some of the oil to refineries.