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    Quebec LNG Feed Pipe Enters Regulatory Arena

Summary

The pipeline project would be among the first to be reviewed under new federal regulations

by: Dale Lunan

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Quebec LNG Feed Pipe Enters Regulatory Arena

A 780-km pipeline from northeastern Ontario to the Saguenay region of Quebec that would deliver western Canadian gas to the proposed Energie Saguenay LNG complex close to the St Lawrence River entered the Canadian regulatory arena on October 22.

The Impact Assessment Agency of Canada (IAAC) has asked for public and indigenous peoples’ comments on the Gazoduq pipeline project by November 12 so that it can prepare a summary of issues for Gazoduq to use in preparing a detailed project description.

The proposed project is a designated project under the IAAC’s Physical Activities Regulations and would be regulated by the Canada Energy Regulator (CER), the IAAC said. It will be one of the first major energy projects in Canada to be reviewed under the federal government’s controversial Bill C-69, dubbed by many the No Pipelines Act.

“The integrated impact assessment for this project is a single assessment that will be conducted through a review panel process,” it said. “The integrated assessment would meet the requirements of both the Impact Assessment Act and the Canadian Energy Regulator Act.”

The 1.8bn ft3/day Gazoduq pipeline would extend 780 km from an interconnection with the TC Energy Mainline system near Ramore, Ontario to GNL Quebec’s proposed Energie Saquenay liquefaction terminal on the shores of the Saguenay River, which flows into the St Lawrence River. While GNL Quebec would be the pipeline’s primary customer, transportation capacity would also be available for contracting by local distribution companies in northern Ontario and Quebec.

The Energie Saguenay LNG project, under development since 2014, consists of an 11mn mt/yr liquefaction and export terminal and associated storage and marine terminal facilities. It carries an estimated capital cost of US$7.2bn (C$9.4bn) and is slated to start operations in 2025, pending receipt of all regulatory approvals and a positive final investment decision.

It is currently being reviewed by both the IAAC – but under federal environmental regulations in effect prior to Bill C-69 – and Quebec environmental authorities.