CALGARY, Alberta (Reuters) – The Canadian energy regulator’s will assess indirect carbon emissions when thinking about TransCanada’s (TO:TRP) Energy East pipeline application sets a harsh precedent for future projects, the Alberta government and supporters on the pipeline said on Friday.

TransCanada said on Thursday it may abandon the proposed 1.A million barrel each day pipeline – from Alberta to New Brunswick – using a decision by way of the National Energy Board in August to observe upstream and downstream carbon emissions when deciding your house project is incorporated in the public interest.

Supporters of Energy East said the NEB’s will consider indirect emissions, or emissions that may with the production and refining from the crude the pipeline will carry, was unreasonable.

“We trust it has to be historic overreach possesses possibility to change up the future of energy development across Canada,” Alberta Energy Minister Marg McCuaig-Boyd said from a statement. “This will not be a suitable issue to enhance the review.”

The Calgary-based pipeline company asked the regulator to pause the application form for Thirty days although it gauges the outcome over the pipeline’s cost, schedule and viability.

It is definitely the latest blow towards a project that Canada’s oil industry says must get oil sands crude to overseas markets to avoid deep discounts on Canadian barrels that eat into revenue for producers already battling with discount prices.

McCuaig-Boyd compared deciding the merits of any pipeline according to downstream emission to judging transmission lines based on how its electricity will probably be used.

The Canadian government released transitional rules for energy reviews in January 2019 having said that upstream emissions from crude producers need to be assessed, even so the NEB’s plan goes further by along with the greenhouse gas impact of the way the crude is required once its off the pipeline.

“This sets a hazardous precedent for other projects because items that could qualify as greenhouse gas emissions would will just burgeon,” said Rafi Tahmazian, an electricity portfolio manager at Canoe Financial in Calgary. “It’s very difficult to calculate.”

The NEB has never released any clarification over the process may well use to contemplate the measurement of upstream and downstream emissions, spokeswoman Sarah Kiley said.

New Brunswick Premier Brian Gallant said inside of a statement he spoke to TransCanada Chief Executive Russ Girling on Thursday evening along with the organization is considering additional, so that it is possible the pipeline will not be built.

TransCanada declined to comment beyond its statement on Thursday and the office of Canadian Natural Resources Minister Jim Carr said it would comment at a later time Friday.

($1 = 1.2136 Canadian dollars)