Quebec’s cupboard determined Wednesday that GNL Québec, a $14-billion venture to carry Alberta pure gasoline to the Saguenay area the place it might be liquified for export markets, won’t go forward.
“It can’t see the sunshine of day,” provincial Power Minister Benoit Charette stated at a information convention within the metropolis of Saguenay.
The workplace of Pure Sources Minister Seamus O’Regan stated in an e-mail assertion in regards to the choice that “completely different jurisdictions face completely different decisions on what their future vitality combine seems like.”
Canada is working “to cut back greenhouse-gas emissions, from upstream-gas manufacturing to downstream LNG (liquified pure gasoline) services, with the aim of constructing Canada the cleanest LNG producer on the planet,” O’Regan’s workplace stated.
GNL Québec, which can be the identify of the working firm for the venture, stated in an announcement it was “disenchanted and stunned” by the federal government’s choice, calling its proposed LNG port “the greenest and most sustainable on the planet.”
The environmentalist group Environmental Defence applauded the choice, saying, “Quebec confirmed true management at the moment by rejecting a brand new fracked gasoline export venture.”
It isn’t clear that GNL Québec would have used fracked gasoline as a result of it had not but chosen its pure gasoline provider.
Charette attributed the federal government’s choice in regards to the venture, which was put ahead by Symbio Infrastructure Restricted Partnership of California, and initially backed by Warren Buffett’s Berkshire Hathaway funding firm, on three failed exams.
First, an evaluation by Quebec’s Bureau d’audiences publiques sur l’environnement (BAPE), the province’s environmental public hearings workplace, discovered the venture would produce as a lot further greenhouse-gas emissions a yr as 3.3 million extra automobiles on Canada’s roads would.
A second evaluation by Quebec’s setting division additionally concluded it wouldn’t scale back greenhouse-gas emissions within the province, whereas there was additionally no settlement made as a part of the venture with the First nations who lived on territory the place it was to be constructed.
Western Canada pure gasoline producers, confronted with strain to interchange fossil fuels with renewables, have tried to forged LNG as a “transition” gasoline, to interchange coal in thermal electrical energy technology, as a result of it produces 50 per cent much less carbon dioxide.
The important thing markets for LNG, for that reason, are in Europe and Asia, the place coal is extensively used.
About 90 per cent of pure gasoline exports from Western Canada now are destined for the US.
Qatar, on the Persian Gulf, now could be the main exporter of LNG. Easy accessibility to Qatar ports means decrease prices as a result of in depth pipelines will not be required.
Requested whether or not one other venture to supply LNG in Quebec as a transition gasoline may very well be acceptable, Charette stated, “we’re very open,” to engaged on new LNG tasks “in sure situations.”
However the approval course of for any new LNG venture would take “a number of years.”
Buffett’s funding firm had initially dedicated $3.8 billion to the venture, however withdrew final yr after demonstrators disrupted delivery by blocking rail strains.
The protests had been in assist of the opponents within the Moist’suet’en First Nation to the TC Power Coastal GasLink pipeline to produce pure gasoline for 2 Kitimat, B.C., LNG tasks.
An settlement between GNL Québec and French financial institution Société Générale, which was looking for European traders, was damaged off lately.
The Innu First Nations of Mashteuiatsh, Pessamit and Essipit stated they concluded after the BAPE report the venture wouldn’t go forward, and whereas GNL Québec stated it was nonetheless open to negotiations, the Innu bands stated they had been ready to take authorized motion to cease the venture.
Quebec Premier François Legault was a supporter of GNL Québec, telling the Quebec nationwide meeting final February the venture may “save the planet.”
Legault favoured the proposed $14-billion funding within the gasoline liquefaction plant and port in Saguenay, in addition to a 780-kilometre pipeline extension from Northern Ontario to the Saguenay.