New LNG gateways

The Globe and Mail ^ | 2/5/07 | RHéAL SéGUIN

[thackney]

Growth in demand for fossil fuel has persuaded Canada to become an active participant in the race for LNG terminals as it seeks to reinforce its standing as the main gas supplier to the United States.

"While Canada does not yet import [liquefied natural gas], there are eight proposals to construct LNG import facilities in Atlantic Canada, Quebec and British Columbia, many of which are currently involved in the environmental assessment regulatory review process," according to a September, 2006, status report prepared by Natural Resources Canada.

Three of the eight projects have already been approved by a joint federal-provincial regulatory panel. The Maritime projects are poised to become major LNG gateways into the northeastern U.S. market, with Quebec eager to also play a major role.

1. Saint John, N.B.: Irving Oil Ltd. is building a $750-million LNG import facility in partnership with the Spanish company Repsol (the largest supplier of LNG in the United States) at the Canaport deepwater marine terminal. The project was approved by government regulators in 2004 and should be in full operation late next year.

2. Bear Head, N.S.: Anadarko Petroleum Corp. began construction of a $650-million LNG import facility late in 2005 shortly after receiving regulatory approval. After a number of setbacks, the project was sold last July to U.S. Venture Energy, a Paris-based private equity group. The project remains tenuous as the new owners attempt to secure an adequate supply of LNG in time to begin commercial operation by late 2008.

3. Goldboro, N.S.: Halifax-based Keltic Petrochemicals, in partnership with Maple LNG (owned by two European energy companies), proposes to include an LNG import facility as part of a major $4-billion petrochemical infrastructure complex that would begin operations in 2009. The project is currently undergoing the environmental assessment process.

4. Bish Cove near the port of Kitimat, B.C.: Calgary-based Kitimat LNG Inc. will begin construction this year of a $500-million LNG import terminal after receiving approval from environmental regulators. The facility, which will be the first to be built along the Canada-U.S. seaboard, should be in full operation in 2010 and help meet the increasing demand for natural gas to develop Alberta oil-sands projects.

5. Prince Rupert, B.C.: Calgary-based WestPac LNG Corp. proposes to build the West Coast's second LNG import terminal. Promoters of the $350-million project are currently seeking formal regulatory approval and plan to be in operation in 2011.

6. Gros-Cacouna, Que.: A joint venture by Petro-Canada and TransCanada to build a $660-million LNG import terminal on the lower Saint Lawrence River near Rivière-du-Loup was recently approved by a joint federal-provincial environmental panel. Pending regulatory approval to build a pipeline to connect with the Eastern Canadian distribution network, the project is planned to be in operation in either 2009 or 2010. Last July, Prime Minister Stephen Harper and Russian President Vladimir Putin vowed to "work to facilitate" export of LNG from Russia to the new facility.

7. Lévis, Que.: If the $840-million Rabaska project owned by Gaz Métro, Enbridge Inc. and Gaz de France obtains regulatory approval, it would become the province's second facility to come on line as early as 2010. However, stiff opposition from local residents to the construction of an LNG import terminal and adjacent pipeline presents a major obstacle that may still derail the project.

8. Grande-Anse, Que.: Énergie Grande-Anse Inc. proposes to build an LNG import terminal along the Saguenay River. Still in its early stages, the project was presented to the Canadian Environmental Assessment Agency in September of 2005, and necessary documentation for public consultation was still being prepared.

[bondjamesbond]

We will have officially become a Pathetic Nation if the Canadians manage to eat our lunch because they can be less enviro-panicked and regulatory than we are.