January 25, 2005

Proposed $700M natural gas project in Quebec to face environmental review

OTTAWA

A proposed natural gas terminal project for the Quebec City region is being referred to a federal review panel for environmental assessment in what could be the latest roadblock for three companies trying to construct it.

Environment Minister Stephane Dion said last Thursday that a review panel is the most appropriate level of environmental assessment for the Rabaska Project, proposed by Gaz Metro, Enbridge Inc. and Gaz de France.

The companies are proposing the construction of a liquefied natural gas terminal located at the limits of the city of Levis.

The federal environment minister said his decision is based on the report and recommendations submitted by the National Energy Board, Fisheries and Oceans Canada, Transport Canada and the Canadian Transportation Agency.

“I am referring the project to an assessment by a review panel following the recommendation by the responsible authorities,” Dion said.

Voted down project

In December, residents of Beaumont voted down the $700-million project, saying they would be vulnerable to terrorist attacks and massive explosions through a mix of flammable insulation and gas on tankers at St. Lawrence River terminals. They also said it would spoil picturesque views along the river.

The vote forced the companies to drop Beaumont and instead pursue three sites in nearby Levis. But city councillors in Levis have passed a resolution against the project.

The Rabaska project includes a terminal comprised of two storage tanks, a jetty to receive the LNG tankers, pumping, compression and vaporizing facilities and a 50-kilometre pipeline connecting the terminal to the existing facilities of Trans Quebec & Maritimes Pipeline Inc. in St-Nicolas.

The Canadian Press

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