Harper, Putin back gas deal
canada.com
Regulatory approval sought for plan to ship natural gas to the U.S. via Quebec
Mike Blanchfield, CanWest News Service with files from The Canadian Press and Reuters
Published: Sunday, July 16, 2006
ST. PETERSBURG, Russia - Prime Minister Stephen Harper and his G-8 host, Russian President Vladimir Putin, voiced enthusiastic support Saturday for a proposal to ship Russian liquefied gas to North America for the first time through a Canadian port.
Petro-Canada is currently seeking regulatory approval in Quebec for a $1.5-billion US LNG project with Russian state-controlled gas company OAO Gazprom. The project would ship gas liquefied in St. Petersburg to a regasification terminal in Gros-Cacouna, Que.
The gas would then be moved to North American markets through Quebec.
Petro-Canada and Gazprom have signed a letter of understanding to explore co-operation. Harper hadn't yet checked into his hotel in St. Petersburg on Saturday before he and Putin issued a statement promoting that co-operation.
"Petro-Canada and Gazprom are really on the edge of an undertaking of a really major project," Putin told Harper in the opening minutes of their first meeting.
As one of the world's top natural gas producers, Russia wants to make inroads and become a major supplier to the United States -- a goal that would be furthered by the Canadian deal.
Canada's ambassador to Russia, Christopher Westdal, said following the Harper-Putin meeting that the venture has support from Russian authorities and both the public and officials in Canada.
"It looks as though it will go forward," Westdal said.
A senior Canadian official added that Putin expressed an interest in more deals with his northern G-8 neighbour. "He thought that given Canadian expertise and interest, there are opportunities for more such business in the energy field."
The two countries are the only net energy exporters in the Group of Eight leading industrialized states and have been keen to highlight that role at this weekend's summit, where "energy security" is high on the agenda.
The current gas plan would be worth $1.5 billion to Russia, but the economic benefits to Canada are still being studied, said federal government officials.
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