Canada in talks with Repsol, Pieridae Energy about LNG export terminals -minister
06/05/2022 20:32
(Adds details on projects, Pieridae comment)
By Nia Williams
May 6 (Reuters) - The Canadian government is in discussion
with the companies behind two proposed east coast liquefied
natural gas (LNG) export facilities to see how it can speed up
the projects and help boost supply to Europe, Natural Resources
Minister Jonathan Wilkinson told Reuters on Friday.
Wilkinson said the government was looking at Spanish company
Repsol's REP.MC LNG facility in New Brunswick and the Goldboro
LNG facility in Nova Scotia proposed by Pieridae Energy
PEA.TO .
Ottawa has held talks with European countries about ways to
boost energy exports to the continent after Russia's invasion of
Ukraine in February upended oil and gas supplies. urn:newsml:reuters.com:*:nL2N2VR1Z6
However, Canada, the world's sixth-largest natural gas
producer, does not have any east coast LNG facilities and only
one under construction on its west coast.
"We are looking at Goldboro and Repsol's projects and
discussing these with the proponents and with German and
European counterparts," Wilkinson said in an interview.
"We are looking at whether there are things we can do to
expedite one or more of the projects in a manner that's
consistent with environmental considerations and a long-term
transition to a lower-carbon future."
Pieridae is proposing a 2.4 megatonne per annum floating
export facility.
Pieridae spokesman James Millar confirmed the company has
had discussions with the government about an LNG export
facility.
"Pieridae has a solution that would allow Canada to take a
leadership role in supplying much needed natural gas overseas to
help solve this issue. We would do this through a net zero
emissions LNG export facility that is actionable today," Millar
said in an email.
Repsol already operates an LNG import facility in Saint
John, and acquired 100% ownership of the project last year. It
did not immediately respond to a request for comment.
Wilkinson said for the projects to go ahead they would
"almost certainly" have to use clean electricity rather than
natural gas in the liquefaction process, and have the ability to
eventually transition to exporting hydrogen.
He added that the C$10 billion Énergie Saguenay LNG project,
which both the Quebec and federal governments rejected on
environmental grounds, was unlikely to be revived.
(Reporting by Nia Williams
Editing by Denny Thomas, Leslie Adler and Marguerita Choy)
((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))