The Canadian province of Quebec on July 21 rejected a LNG 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 said.
The CA$9 billion (US$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.
Several project have been put on hold or canceled in recent months, including Annova's Brownsville in Texas, Woodside Petroleum Ltd.'s Kitimat in British Columbia and Pembina Pipeline Corp.'s Jordan Cove in Oregon.
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. decided not to invest CA$4 billion in GNL Quebec's project, the Canadian Broadcasting Corp. reported.
($1 = 1.2552 Canadian dollars)
Recommended Reading
Despite Slowing NAM Activity, Weatherford Declares First-ever Dividend
2024-07-24 - Weatherford reported a softer North America market but strong overseas growth, leading the company’s board to authorize its first share buyback program and first quarterly dividend.
Souki’s Saga: How Tellurian Escaped Ruin with ‘The Pause,’ $1.2B Exit
2024-09-11 - President Biden’s LNG pause in January suddenly made Tellurian Inc.’s LNG export permit more valuable. The company’s July sale marked the end of an eight-year saga—particularly the last 16 months, starting with when its co-founder lost his stock, ranch and yacht in a foreclosure.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Endeavor Energy Founder Autry Stephens Dies at 86
2024-08-16 - Stephens created a legacy in the Permian Basin that Endeavor said will continue to shape the future of the company.