GNL Quebec proceeds with LNG export plans at Saguenay and St. Lawrence river junction

Wednesday, 09 January 2019
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GNL Quebec Inc. is still planning an export project in the French-speaking Canadian province, comprising a liquefaction and export plant near Port Saguenay at the junction of the Saguenay River and the St. Lawrence River.

The company said its LNG proposals were still on track as it filed with the Canadian National Energy Board on January 8 as an interested party in the North Bay Junction fixed-price natural gas delivery service of TransCanada Corp.

The GNL Quebec LNG project is known as Energie Saguenay and is backed by two equity firms based on the West Coast of the US.

They are Breyer Capital of Menlo Park, California, and Freestone International from San Francisco.

“GNL Quebec wishes to participate in the North Bay Junction proceedings as the issues to be addressed are material to its Energie Saguenay LNG export project, which is planned to be in service by 2025,” it told the Board.

The Quebec liquefaction facility proposes to export up to 11 million tonnes per annum of LNG to Europe, Asia and South America.

“An integral part of the project is procuring gas supply with terms of up to 20 years from Western Canadian producers and finalizing long-term transportation arrangements on the TransCanada Canadian Mainline to supply the project facility in Quebec,” GNL Quebec told the Board.

“GNLQ plans to receive firm service transportation in 2025 from Empress to Ramore, which is a proposed delivery point located near North Bay Junction,” the Board was told.

“Substantial capacity will be requested of up to 1.6 billion cubic feet per day, and commercial discussions have been initiated with TransCanada for this service,” it explained.

“At Ramore, the proposed Gazoduc Pipeline will interconnect with the Mainline and transport gas on its 42-inch pipeline,” it added.

“Gazoduc will extend 750km across northern Ontario and Quebec to Chicoutimi, Quebec where the LNG project will be located,” said GNL Quebec.

The developers of the Gazoduc pipeline filed their pre-application project description with the NEB on November 20, 2018, and their project notice with Quebec’s Ministry of Environment and the Fight Against Climate Change (MELCC).

GNL Quebec said it expected its project economics and the gas transportation service will be substantially impacted by the issues that are considered and decided in the North Bay Junction proceedings, including the terms of service, tolls, tolling structure and the availability of Mainline capacity.

“For example, the availability of capacity across the Prairies and the Northern Ontario Line in the 2025 timeframe when the project commences service may well be impacted by the proposed new service,” explained Quebec GNL.

“The Board may wish to consider whether the terms and conditions approved will contribute to efficient system expansion and non-discriminatory treatment of new shippers willing to subscribe for firm service in the same timeframe and over the same path as the new service,” it added.

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