Quebec nixes LNG plant that would have carried Western Canadian natural gas to markets overseas

Quebec nixes LNG plant that would have carried Western Canadian natural gas to overseas markets

The Quebec authorities has refused to approve building of a liquified pure fuel (LNG) facility within the Saguenay, north of Quebec Metropolis, following years of opposition from residents, Indigenous communities and environmental specialists.

The choice, introduced Wednesday by Setting Minister Benoit Charette, successfully kills a $14-billion undertaking that will have carried pure fuel from Western Canada throughout Quebec to the Saguenay port, then shipped it to markets abroad.

Premier François Legault’s authorities had initially been a proponent of the undertaking, which it hoped would diversify the economic system in a area largely depending on the aluminum and forestry industries.

However the authorities additionally set out three standards for approving the pure fuel facility: it had to assist with the transition towards greener types of vitality, decrease greenhouse fuel emissions and have adequate public assist.

Charette mentioned an evaluation by his ministry decided the Énergie Saguenay undertaking could not meet the primary two standards. Ministry officers did not trouble analyzing the third.

‘It’s a undertaking that has extra disadvantages than benefits,’ Quebec Setting Minister Benoit Charette, seen right here in November 2020, mentioned Wednesday. (Paul Chiasson/The Canadian Press)

“It’s a undertaking that has extra disadvantages than benefits,” he mentioned at a information convention in Saguenay.

Legault’s cupboard met hours earlier to finalize the choice to not assist building of the ability.

The $14-billion undertaking was composed of a plan to construct a 780 -kilometre pure fuel pipeline from northern Ontario to Saguenay, and a separate undertaking to construct a plant to liquify the fuel in Saguenay and cargo it onto tankers.

Wednesday’s resolution involved solely the LNG plant, however Charette acknowledged that with out the plant it was most unlikely the pipeline would go forward, too.

GNL Quebec, the corporate behind Énergie Saguenay undertaking, mentioned in a press release that it was “disillusioned and shocked” by the announcement, and was evaluating what to do subsequent.

Charette acknowledges disappointment possible in West

The pure fuel would have come from Western Canada, primarily from hydraulic fracturing operations in British Columbia and Alberta. Charette mentioned he anticipated many there, particularly in Alberta, could be disillusioned by Quebec’s resolution.

However he pressured that Quebec wasn’t the one jurisdiction on the planet to look critically at pure useful resource tasks.

“To our associates from Alberta, we are saying, let’s work collectively on other forms of tasks, on cleaner tasks,” he mentioned.

The Quebec authorities’s preliminary enthusiasm for the undertaking turned troublesome to take care of as main monetary backers withdrew their assist and environmental considerations mounted. 

In March, the province’s unbiased environmental overview company issued a report that was essential of the plans to construct a plant and marine terminal within the Saguenay.

The undertaking was more likely to improve greenhouse fuel emissions in Canada by eight million tonnes yearly, the company concluded.

A Greenpeace banner studying ‘No GNL’ is proven hanging from a constructing below building on the College of Montreal in October 2020. Énergie Saguenay, a undertaking by GNL Quebec, had attracted vital opposition from environmental teams. (Graham Hughes/The Canadian Press)

Final month, federal environmental businesses decided the undertaking, which might contain massive tankers transiting alongside the Saguenay River, threatened beluga whales.

And final week, three Innu communities vowed to oppose the undertaking due to the damaging affect it will have on the setting.

“We signed a collaboration settlement with the promoter a number of years in the past, however over time we realized the undertaking wasn’t that inexperienced,” Martin Dufour, chief of the Essipit Innu band council, mentioned Wednesday.

“It was a simple resolution as a result of the undertaking went in opposition to our values about fauna and the setting.”

Different investments coming for Saguenay, minister guarantees

For the Saguenay enterprise neighborhood, nonetheless, the federal government’s resolution was a bitter tablet to swallow, particularly after it had overtly supported the undertaking for thus lengthy.

Charette was joined at Wednesday information convention by Andrée Laforest, the minister accountable for the Saguenay space.

“I did not need to flee from the unhealthy information,” mentioned Laforest, who was amongst Énergie Saguenay’s most vocal supporters.

Laforest promised different main investments within the native aluminum and forestry industries could be forthcoming. Together with Charette, she tried to underscore that their authorities remained receptive to different massive growth alternatives.

“We believed within the GNL Quebec undertaking. The federal government was very open to it. We are going to proceed to be open to bold tasks,” she mentioned.

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