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July 22, 2021

Quebec cancels $7.2bn LNG project over environmental concerns

GNL Quebec had plans to build a plant in Port Saguenay to liquefy natural gas from Western Canada.

By Archana Rani

The Government of Quebec in Canada has reportedly rejected the GNL Quebec’s Énergie Saguenay LNG project due to concerns over its greenhouse gas emissions.

The project, which was expected to cost $7.2bn (C$9bn), was aimed to receive, liquefy and export about 11 million tonnes of LNG annually from Western Canadian sources.

Quebec Environment Minister Benoit Charette said that the proposed Énergie Saguenay project would not support a transition to cleaner energy sources and has concerns over its emissions.

Charette added: “This project has more disadvantages than advantages.”

Charette noted that construction would also not take place on the 750km underground natural gas transmission line that was intended to supply the Énergie Saguenay facility.

Commenting on the decision, GNL Quebec said that the group was ‘disappointed and surprised’.

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GNL spokesman Louis-Martin Leclerc was reported by The Canadian Press as saying: “Our board of directors will evaluate the next steps to deal with this difficult decision that will have an impact on our employees, our investors and our stakeholders.”

Welcoming the Quebec government’s decision, the environmental groups, including Equiterre, the David Suzuki Foundation and Greenpeace, said that the decision was a victory.

The group said: “The Quebec Government’s announcement of the rejection of the GNL Québec project demonstrates that there is no future for fossil fuel projects.

“With the death of the Energy East pipeline in 2017, the setback of Goldboro LNG earlier this month and the rejection of GNL Québec today, we can finally look forward to a future without new pipelines in la belle province.”

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