Government Revisits Canceled LNG-Québec Project
The Quebec government is re-evaluating a previously scrapped liquefied natural gas (LNG) pipeline project as economic pressures and trade tensions with the United States mount. The project, known as LNG-Québec, was initially rejected in 2021 due to environmental concerns, particularly the risks associated with increased tanker traffic along the Saguenay River and its impact on beluga whale populations.
Quebec’s Environment Minister, Benoit Charette, stated that while the province is not opposed to energy projects, any proposal must align with environmental criteria. “If it’s the same project with the same specs, the decision will be the same,” he said, referencing the conclusions of the Bureau d’audiences publiques sur l’environnement (BAPE), which played a crucial role in rejecting the project. However, Charette left the door open for reconsideration, saying that if the concerns raised at the time were addressed, the proposal could be accepted.
The original plan involved a 780-kilometre pipeline transporting natural gas from northern Ontario to Quebec’s Saguenay region, where a facility would liquefy the gas for overseas shipment. The Legault government had initially supported the project, seeing it as an opportunity to diversify the economy in the Saguenay, which relies heavily on the aluminum and forestry sectors. However, the environmental risks and public opposition led to its cancellation.
Push for Export Diversification Sparks New Interest
Quebec Premier François Legault recently emphasized the need to reduce reliance on the U.S. market, citing economic vulnerabilities and potential tariffs. Speaking at the Chamber of Commerce of Metropolitan Montreal, Canada’s Foreign Affairs Minister Mélanie Joly echoed this sentiment, suggesting that reviving LNG-Québec could help Canada tap into global markets, particularly in Europe.
“We currently have a vulnerability with respect to the United States for our oil and our gas,” Joly said. “Canada has essentially one client. For Alberta oil, 98 per cent of the oil goes to the U.S., but we don’t currently have pipelines that cross Canada to come to Quebec.”
Conservative Party leader Pierre Poilievre has also voiced support for the project, arguing that exporting LNG to Europe would yield higher profits than relying solely on U.S. sales. He criticized Canada’s current energy strategy, stating, “We can sell something 200 per cent or 300 per cent higher in Europe if we export overseas instead of giving all our gas to the Americans and letting them have all the profit.”
Political and Environmental Hurdles Remain
Despite renewed interest, political opposition and environmental concerns continue to cast doubt on the project’s viability. Parti Québécois MNA Pascal Paradis insisted that the decision should be made by Quebecers, not federal politicians. “It’s not Mélanie Joly and it’s not the Conservative Party of Canada to decide for Quebecers when it comes to that project,” he said.
Paradis also questioned whether the project aligned with Quebec’s economic interests or had the necessary social support, concerns that had played a key role in its rejection in 2021. “We had a big debate on that project already, and it wasn’t determined that it was in Quebec’s economic interests at the time,” he said. “Those two questions are still there.”
The federal government had also declined to approve LNG-Québec in 2022, further complicating any potential revival. With economic pressures growing, the province may need to balance environmental considerations with the need to secure new markets for its resources. However, without addressing past concerns, the project could once again face strong opposition.
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