The company has said repeatedly that eastern Canadian refiners rely on imports for 86 per cent of their daily needs.
It's also going to withdraw from a Quebec environmental review.
Energy producers in Alberta had hoped the TransCanada projects would help them diversify their markets, with most of the existing pipeline network linking the energy-rich province to the U.S. Midwest and Gulf Coast.
Canada's National Energy Board (NEB) granted TransCanada a 30-day suspension on Sept 8, after the company said it needed to review the impact of new assessment criteria that would consider the C$15.7 billion (US$12.58 billion) project's indirect greenhouse gas contributions.
"Obviously it's not great that they've canceled the project, but overall I think it was anticipated", said Manash Goswami, a Portfolio Manager with First Asset Investment Management Inc. That pipeline, however, is now locked up in lawsuits, and the B.C. government is intervening in challenges to its approval.
Energy East was up for its second NEB review, after the first stalled a year ago amid protests by environmentalists and after revelations that regulatory panel members met privately with a TransCanada consultant.
While Energy East's collapse may cost Trudeau support in the traditionally conservative oil heartland of Alberta it is likely to prove popular in the eastern province of Quebec, which has far more parliamentary seats and where pipeline opposition from politicians and environmental groups had been stiff.
Picard is a signatory to the Treaty Alliance Against Tar Sands Expansion, a coalition of 150 tribes in Canada and the United States fighting against any and all oilsands pipeline projects.
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New Brunswick Premier Brian Gallant expressed disappointment in the cancellation and said he believes the project's decision is because recent changes to world market conditions and the negative impact of lower oil prices. It was not immediately clear whether the project's opponents would be able to hold up Energy East as an example to the court.
It will now inform the federal and provincial regulators that it will no longer be proceeding with its applications for the projects.
Montreal Mayor Denis Coderre said the TransCanada announcement was "a handsome victory" against a "botched" pipeline project.
"Energy, pipeline and climate issues have been among the most highly charged political debates in Canada for several years", said Abacus chairman Bruce Anderson.
"Make no mistake, other companies' decisions to invest in Canada will be informed by this debacle".
"TransCanada made the decision to cancel Energy East - but make no mistake, the reasons for it fall at the feet of Prime Minister Justin Trudeau and the federal government", Wall said in the statement.
"In a world where the oil sands were growing and the price of oil was really high, it didn't really matter that that pipeline was a little pricier to ship on, because it was still a lucrative proposition", he said.