The LNG Quebec project is not dead. Its promoters even believe that it could experience a resurgence of interest, thanks to the war in Europe. The debate over the export of natural gas from eastern Canada is indeed likely to resurface, according to energy experts. Prime Minister Justin Trudeau also pleaded on Wednesday in favor of the “energy partnership” with Germany, which includes discussions on liquefied natural gas.
Despite the refusals of the government of Quebec and Canada, The duty noted that the promoters of the liquefaction plant and the LNG terminal in Quebec, in Saguenay, have not put a cross on their project. The war in Ukraine and Europe’s desire to substantially reduce its natural gas supplies from Russia could even revive interest in this industrial liquefied natural gas (LNG) export complex.
“It is clear that the tragic situation in Ukraine is exacerbating an energy crisis that began last summer in Europe and has unfortunately led to record levels of coal consumption. LNG Quebec had also precisely explained, during the regulatory process, this major geopolitical risk for Europe, “said company spokesperson Louis-Martin Leclerc, adviser at Tact, on Wednesday. This “advisory service” agency still offers “support, as needed”, to GNL Quebec.
“With the European Union’s recent decision to reduce its dependence on Russia, Quebec and Canada can help it diversify its energy sources and replace more polluting fuels by exporting LNG from competitive sources and responsible like the carbon-neutral Énergie Saguenay project powered by hydroelectricity,” the spokesperson added in a written response.
GNL Quebec, which still has “active” lobbying mandates in the federal register, also renewed its lobbying mandate in the Quebec register on February 14. It is now valid until 1er March 2023. This mandate, which includes two leaders of GNL Québec, aims to carry out “steps” in order to obtain authorizations for the project, a supply of “hydroelectricity” and “the potential obtaining of financial support [montant indéterminé] governmental available [prêt ou autre] “.
Gazoduq, which would like to build the 780 kilometer gas pipeline that would supply the Saguenay plant, has not given up either. “We will closely follow the decisions of GNL Quebec in order to assess our next steps,” it was said on Wednesday.
“A promoter can, even if a government decision has already been made, present a project again,” indicated the cabinet of the Minister of the Environment, Benoit Charette, adding that it should go through the entire process of Evaluation. The federal government’s recent refusal “does not prevent GNL Québec from submitting a new proposal”, also indicated Minister Steven Guilbeault’s office. However, it will be subject to the environmental assessment process.
In addition to GNL Québec, the promoters of the Goldboro LNG project in Nova Scotia also believe that the context of the crisis is an opportunity for Canada to become an LNG supplier for Europe. “What better way for Canada to demonstrate its leadership than by supplying Europe with the gas it needs,” said Pieridae Energy’s director of external relations, James Millar, by email.
German “Partners”
As part of a press briefing held in Berlin on Wednesday, Prime Minister Justin Trudeau also stressed that Canada and Germany are “partners” in the field of energy. “Even though we are working very hard for the transition, we know there is a need for oil and gas,” he said, recalling that “Canada has a very strong energy sector”.
Berlin and Ottawa signed an “energy partnership” in 2021. When announcing this agreement, the Trudeau government affirmed that LNG projects are part of the development of “clean energy”, in the context of the fight against climate crisis.
In January, the two countries also held a meeting devoted to the development of the gas industry and LNG projects. Pieridae Energy chairman Alfred Sorensen attended, according to information obtained by The duty. Representatives from Alberta, Natural Resources Canada and “NGL Newfoundland and Labrador” were also present at this ” workshop which aimed to promote Canadian natural gas, in a context of “energy transition”.
Specialist in Canadian politics and professor at the University of Alberta, Frédéric Boily believes that it is time to have a “debate” on projects like GNL Québec and Goldboro LNG. “Projects have often been lumped together, whether it’s a pipeline carrying oil or a gas pipeline, which makes things confusing for citizens. The debates were very polarized ideologically, but the current context makes it possible to have this debate, to see what Canada can actually do. »
The war will bring the issue of energy exports back to the fore, according to Boily. “Perhaps Canada will be solicited more by its European partners. Perhaps the pressures will be greater, which could lead to a reassessment of certain projects. He also predicts that this issue will be part of the leadership race for the Conservative Party of Canada.
Projects have often been lumped together, whether it’s a pipeline carrying oil or a gas pipeline, making things confusing for citizens
Holder of the energy sector management chair at HEC Montréal, Pierre-Olivier Pineau believes that the signing of “long-term contracts” with European countries could make it possible to relaunch a project like GNL Québec, since this would facilitate the ” funding” for this $14 billion project. Provided, however, that buyers also have “credible energy transition plans”, which is the case with Germany, according to him.
“If we said yes today to the LNG Quebec project, it would not see the light of day before 2025. But at that time, the crisis in Ukraine will have passed, while the climate crisis will still be there”, affirms for her part Annie Chaloux , professor at the School of Applied Politics at the University of Sherbrooke. “If you build infrastructure that stimulates increased hydrocarbon production, there are fewer incentives for the transition. In the end, we will therefore respond less to the climate crisis. »