TransCanada's Energy East pipeline faces Quebec injunction

The Canadian province of Quebec will seek an injunction against TransCanada (TSX, NYSE:TRP) to ensure that its proposed $15.7-billion Energy East pipeline project complies with the province's environmental laws.

Environment Minister David Heurtel said the injunction was filed Tuesday after TransCanada ignored his requests to submit the project for provincial review.

Quebec's Environment Minister David Heurtel said the injunction was filed after the firm ignored requests to submit the project for provincial review.

"Today's motion is very simple and very clear. It signifies that whoever seeks to build a project in Quebec must comply with all Quebec laws and regulations," Heurtel said in a statement.

"This is not only a matter of respect, but equally a question of fairness towards all companies that wish to do business in Quebec."

Heurtel’s announcement comes a few weeks after a coalition of Quebec environmental groups said it would take legal action against the project for the same reasons.

It also follows a British Columbia ruling in January, which determined local authorities had a responsibility to examine the Northern Gateway project in that province.

Energy East would carry 1.1 million barrels a day of western crude as far east as Saint John, N.B., serving domestic refineries and international customers.

The project has run into stiff opposition in Quebec, with the mayors of Montreal and surrounding municipalities arguing that environmental risks outweigh the economic rewards.

TransCanada's Energy East pipeline faces Quebec injunction

Source: TransCanada