Atlantic Canada's second LNG terminal gets environmental approval
Updated at 16:48 on August 9, 2004, EST.
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HALIFAX (CP) - Nova Scotia moved one step closer Monday to having its own liquefied natural gas terminal.
The province's Environment Department and the federal Fisheries Department gave the green light to a proposal by Access Northeast Energy Inc. The company wants to construct and operate a $415-million LNG plant at Bear Head, N.S., on the Strait of Canso, which would unload condensed natural gas arriving in supertankers, turn it back into a vapour and channel it into a pipeline for shipment south.
"This is really excellent news and a significant milestone," said Kim West, a spokeswoman for Access.
The proposal examined by the environmental assessment includes a marine terminal, land-based storage tanks and a facility in which the liquefied gas will be converted.
Environment Minister Kerry Morash said the company must still submit plans to deal with storms, potential spills and wetlands protection.
"There were no surprises in today's decision," said West. "We had expected conditions to be attached. We will meet all of these requirements."
The project still has a series of hurdles to cross.
Each of the company's proposals to meet the environmental conditions that were spelled out Monday will have to be reviewed and approved.
But by far, the biggest obstacle to overcome will be attracting suppliers to the terminal.
However, West said with the environmental approvals out of the way, commercial negotiations can be finalized.
Last week, environment officials in New Brunswick approved a plan to construct an LNG plant near Saint John, N.B.
To meet growing demands in the United States, energy companies are planning to ship supertankers full of liquefied natural gas to North American ports from foreign suppliers such as Russia and Saudi Arabia.
Commercial operations for the proposed Bear Head terminal are expected to begin in November 2007.
Economic Development Minister Ernie Fage said the project could serve as an important catalyst for the development of a petrochemical industry.
But more important, he said it will provide gas to keep the Maritimes and Northeast Pipeline to New England operating at full capacity.
"It will be good for jobs and growth locally," he said.
"It'll help maintain that pipeline for us in the future as more offshore reserves are brought on and discovered in Nova Scotia."
The province's offshore natural gas industry has been operating under a cloud of uncertainty.
The estimated reserves of the Sable Island project have been downgraded and Nova Scotia's second planned development - Deep Panuke - is on hold while Encana Corp. finds a way to make it economically feasible.
The Canadian Press, 2004 |
