Canada's Quebec rejects LNG export project, citing environmental concerns (updated)
21/07/2021 21:08
(Adds comments from Quebec minister, company, environmental
groups, background)
MONTREAL, July 21 (Reuters) - The Canadian province of
Quebec on Wednesday rejected a liquefied natural gas export
project for the Port of Saguenay, citing environmental concerns,
in the latest blow to North American LNG development.
Quebec Environment Minister Benoit Charette said the
proposed Énergie Saguenay project will not come to pass due to
concerns over its emissions and would not support a transition
to cleaner energy sources.
"This project has more disadvantages than advantages,"
Charette told reporters.
The C$9 billion ($7.2 billion) project by privately held GNL
Quebec had plans to export 11 million tonnes of LNG a year from
Western Canadian sources, according to the company's website.
A separate underground natural gas transmission line that
would have been constructed between northeastern Ontario and
Saguenay to supply the facility will also not be built, Charette
said.
GNL Quebec said in a statement the group was "disappointed
and surprised," and that its board of directors would evaluate
the next steps.
Environmental groups applauded Quebec's decision
More than a dozen North American LNG developers have pushed
back decisions to start construction primarily because of a lack
of long-term deals needed to finance the multibillion-dollar
facilities. urn:newsml:reuters.com:*:nL2N2OE19Y
Several project have been put on hold or canceled in recent
months, including Annova's Brownsville in Texas, Woodside
Petroleum Ltd's WPL.AX Kitimat in British Columbia and Pembina
Pipeline Corp's PPL.TO Jordan Cove in Oregon. urn:newsml:reuters.com:*:nL1N2LK262
urn:newsml:reuters.com:*:nL1N2MG1YW urn:newsml:reuters.com:*:nL3N2N503J
Customers have been reluctant to sign long-term LNG purchase
deals over the past year due partly to slower growth in demand
for the super-cooled fuel.
Analysts said they expect global demand to grow at just 3%
to 5% between 2021 and 2025.
In 2020, Warren Buffett's Berkshire Hathaway Inc BRKa.N
decided not to invest C$4 billion in GNL Quebec's project, the
Canadian Broadcasting Corp reported.
($1 = 1.2552 Canadian dollars)
(Reporting by Allison Lampert; Additional reporting by Scott
DiSavino; Editing by Leslie Adler and Peter Cooney)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters
Messaging: allison.lampert.reuters.com@reuters.net))