Ottawa rejection likely final blow for Quebec LNG plant

Ottawa's rejection of GNL Quebec's liquefied natural gas plant and exportproject inSaguenay, Que., appears to be the final nail in the coffin for the nergie Saguenay project that was previouslydeniedby the province in July2021.

"It's a great relief for us," saidAdrien Guibert-Barthez who lives in Saguenay,a two-hour drive north of Quebec City, and is a spokesperson for Coalition Fjord, a group thatactively opposed the project and the impact it would have on the environment.

"It's the first LNG terminal that's been blocked by a government," he said. "It's a big step to end the era of [fossil] fuels."

Canada's Minister of Environment and Climate Change, Steven Guilbeault,signed off on a report by the Impact Assessment Agency of Canada(IAAC) on Monday evening that said the project should not go ahead.

In an environmental assessment decision statement, Guilbeaultsaidthe negative effects the GNL Quebec project would have on the environment were "in no way justifiable."

The $14-billionplan included construction ofanatural gas liquefaction plant and a wharf on the Saguenay fjord withinfrastructure to store gas,load tankers and ship liquefied natural gas (LNG)from a marine terminal near the Grande-Anse portto markets overseas.

• Discord on the Fjord: people in Saguenay divided over massive LNG project

Since GNL Quebecstarted developing the project in 2014, it has faced a chorus of opposition from Indigenous communities, experts and locals, though somesaw the project as a way to create jobs and diversify the region's economy. After lengthy consultations and anenvironmental review,Quebec decided not to let the project go aheadlast year.

GNL Quebec'slast resort would be tosubmit a new proposal but Guibert-Barthez says from what he's heard, the provincial and federalrefusals appear to bethe end of the line for the nergie Saguenay project.

"I think they understood the message," he said."In Saguenay, eventhe former employees say the project is dead."

Not surprised

GNL Quebec issued a short statement Monday, saying it hastaken note of the federal government's decision and will be evaluating itsimpact on the nergie Saguenay project.

The major concerns outlined in theIAAC report wereincreased greenhouse gas emissions, negative effects on the cultural heritageof nearby Innu communities and the risks posed toSt. Lawrence beluga whales and other marine mammals.

Richard Martel, a Conservative MP for Chicoutimi-Le Fjord in the Saguenay region, supported GNL Quebec's proposal in front of the province's environmental review boardbut says Ottawa's decision wasone he expected.

"I'm not surprised at all," he told Radio-Canada. "But I am disappointed ... because the demand for liquefied natural gas is growing [globally]."

Martel points out that natural gas was part of an energy agreement Canada and Germany reached last springand he says he's worried about Quebec missing out if similar LNG facilitiesgo ahead in other provinces instead.

Pipeline still under review

Another key element of the LNG project isa780-kilometre pipeline that would haveshuttled natural gas from Western Canada across Ontario to the Saguenay port.

The IAAC says the pipeline, led by a company called Gazoduq,is thesubject of a separateongoing federal assessment, though Quebec officialspreviously said without a production facility and export terminal it's not likely to go ahead.

Gazoduq and GNLQuebec are owned by the same parent company andunless theIAACis notified in writing that Gazoduq no longer plans to proceed with construction, it has to submit all of the requiredimpact studies of the project by July 17, 2023.

In a statement, Guilbeault said he's confident that denying the LNG project was the right choice but the minister said he still hopes to work with the Saguenay region on future energy projects.

"The Government of Canada prides itself on making decisions based on the best available data," he said."Decisions must also balance both economic and environmental considerations, and respect the rights of Indigenous Peoples."

"The government will continue working with Saguenay communities and prospective investors on environmentally sustainable projects that deliver economic benefits for the region," Guilbeault said.