"In making the decision to approve these projects, our government took into consideration a wide variety of information, data and scientific evidence, including the National Energy Board's recommendation report, the views of Canadians and enhanced consultations with Indigenous peoples".
"Energy East was a disaster waiting to happen".
The Calgary-based company (TSX:TRP) had announced last month that it was suspending its efforts to get regulatory approvals for the mega project.
The demise of the pipeline comes less than a year after the Canadian government rejected another export pipeline, Enbridge Inc's Northern Gateway, and is a further setback for Canada's oil industry which is already hurting from low global crude prices.
In late August, the National Energy Board - an independent regulatory agency that oversees worldwide and inter-provincial oil and gas pipelines - announced it would consider upstream and downstream greenhouse gas emissions in determining whether the Energy East pipeline was in the national interest.
The United Conservatives Interim Party Leader Nathan Cooper questioned the willingness of "Justin Trudeau and the Liberals to loudly champion Energy East and other pipeline projects".
Saskatchewan Premier Brad Wall says the reasons for the decision fall at the feet of Prime Minister Justin Trudeau and the federal government.
Irving Oil has worked with TransCanada on this project since it was first announced in 2013.
Citing "changed circumstances" company President Russ Girling says they will be informing the National Energy Board of their plans to cancel the project.
"We understand that it is driven by a broad range of factors that any responsible business must consider".
Energy East would have carried about 1.1 million barrels of oil a day from Alberta and Saskatchewan to eastern Canadian refineries and a marine terminal in New Brunswick, on Canada's Atlantic Coast.
"Today's announcement is not the result of a sudden decision by TransCanada".
"That said, we do have a position in all other pipeline projects, and no single pipeline will impact our ability to grow", Seetal said.
The review process is over, but several legal challenges to the pipeline - including over whether the environmental review adequately considered climate impacts - have tied the project up in the courts.
The company said it would take a C$1 billion after-tax non-cash charge in its fourth quarter.
Pipelines in Western Canada, which holds the world's third-largest crude reserves largely in Alberta's oilsands, can carry about 3.3 million barrels of crude a day, according the the Canadian Association of Petroleum Producers, or CAPP.
Montreal Mayor Denis Coderre, who has opposed the pipeline on environmental grounds, said he was thrilled to see it abandoned.
"This project was so wrong and so risky, its hard to believe it was seriously contemplated", Gretchen Fitzgerald, national program director of environmental organization the Sierra Club, said.