Canada's Pieridae in talks with govt, TC Energy to ensure LNG project supply (updated)
22/09/2022 17:01
(Adds details on opposition to pipelines)
By Nia Williams
Sept 22 (Reuters) - Pieridae Energy PEA.TO , one of the
companies proposing a liquefied natural (LNG) gas terminal on
Canada's east coast, has asked the federal government to help
ensure pipeline operator TC Energy TRP.TO would be able secure
permits to expand gas supply pipelines in a timely fashion.
Pieridae Chief Executive Alfred Sorensen told Reuters its
Goldboro LNG project can only go ahead if TC expands capacity on
its existing pipeline network.
"There's no other way. Without TC Energy there is no
Goldboro LNG project," Sorensen told Reuters.
Since Russia's invasion of Ukraine triggered a global
scramble for gas, European policymakers have looked to Canada as
a potential new and reliable LNG supplier due to its abundant
reserves and proximity to Europe. urn:newsml:reuters.com:*:nL8N2ZZ4AD
But limited pipeline capacity has emerged as the main
stumbling block for plans to ship gas from western Canada to the
Atlantic Coast, where it could be liquefied and loaded onto
tankers for export to Europe. urn:newsml:reuters.com:*:nL8N3004T3
Calgary-based Pieridae has proposed building a 2.4
million-tonne-per-annum export terminal in Nova Scotia, which
would cost around $3 billion and begin shipping in 2027, if
construction could start next year. Spanish company Repsol
REP.MC is also considering an LNG export terminal in New
Brunswick.
However, TC's existing pipeline network is not large enough
to ship the amount of gas that would be required.
TC did not respond to questions about discussions with
Pieridae, but in a statement to Reuters said it has "virtually
no spare capacity" on its pipelines due to high energy demand.
At a recent meeting, Pieridae asked the federal government
to help ensure the regulatory process for any pipeline proposal
from TC is clear and does not get derailed by legal challenges
or protests from outside groups.
"We've made our pitch and now we just have to wait and see.
We've also been speaking to TC Energy, and they have to be the
guys who decide to go first," Sorensen said.
A spokesman for Natural Resources Minister Jonathan
Wilkinson did not directly comment on the Pieridae project.
"Canada was one of the first countries to commit to increase
oil and gas exports after the illegal invasion of Ukraine, and
we continue to work with international partners to bolster
global energy security," spokesman Keean Nembhard said.
Many oil and gas industry players say Canada's regulatory
process for new pipelines is too lengthy and onerous, while
environmental groups argue past projects were not properly
scrutinized.
"The government is happy and keen to work with private
sector to reduce friction in the regulatory process, but we're
not about to circumvent the regulatory process, or change it. We
have confidence in it. And we're not going to make uneconomical
projects economical," said a government source who was not
authorized to speak on the record.
The federal government has overhauled its environmental
review process for major projects, but TC previously scrapped
its Energy East and Keystone XL oil pipelines after years of
delay.
Energy East encountered fierce public opposition and
regulatory hurdles, while U.S. President Joe Biden followed
through on a campaign pledge to revoke the permit on KXL.
TC's Coastal GasLink pipeline in British Columbia, which
was subject to a provincial regulatory review and will supply
the Shell-led SHEL.L LNG Canada project, is nearly 75%
complete but facing ongoing protests from First Nations.
(Additional reporting by Steve Scherer in Ottawa;
Editing by Denny Thomas, Jonathan Oatis and Marguerita Choy)
((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))