As a result of the decision, TransCanada expects an estimated $1 billion after-tax, non-cash charge to be recorded in the fourth quarter, the company said in a statement Thursday. Many environmental groups opposed the pipeline as well.
It's also going to withdraw from a Quebec environmental review.
The two projects cancelled Thursday were "inextricably linked", because TransCanada would be converting some of its natural gas pipeline capacity during the construction of Energy East. The NEB decided in August to take into account the greenhouse gas emissions upstream and downstream of the project in its assessment.
Aurore Fauret, Tar Sands Campaign co-ordinator at 350.org said the decision is proof that climate action and pipelines don't mix, and that organized resistance can prevail.
"We believed if TransCanada continued with the process, the project would be approved".
The Saskatchewan Urban Municipalities Association and Regina Mayor Michael Fougere also spoke in favour of Energy East.
The B.C. government doesn't share her view, however, and is now part of a court challenge against Trans Mountain being heard this week. "With the world quickly turning to renewable energy, there's no need for more outdated fossil fuel projects".
TransCanada said it needed time to review recent changes announced by the NEB on environmental assessment factors and other issues related to the projects. "Energy East is dead!" he tweeted in French.
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.
The decision, almost a month after the company halted regulatory applications for the project in the face of tough official scrutiny, is a blow to the ailing economy of the New Brunswick province and heads off a broader political row over the project.
February 3, 2016: The National Energy Board directing TransCanada to rework its application to build the contentious Energy East pipeline because the document is too hard to understand - even for experts.
TransCanada says it will inform the National Energy Board that it will no longer be proceeding with its applications for both pipelines.
Montreal Mayor Denis Coderre said the TransCanada announcement was "a handsome victory" against a "botched" pipeline project.
The Liberals are defending jobs while protecting the environment, Trudeau insisted during question period, but "the market conditions have changed fundamentally" since the pipeline was proposed, including a steep drop in oil prices, he said.
"This is not up to me to explain why the company took this decision".
Carr shrugged off Raitt's criticism, saying there are signs of growth in the energy sector despite "market challenges" posed by sagging oil prices.