Page 15 - GLNG Week 12 2023

GLNG EUROPE GLNG

Spain’s Repsol scraps plans for LNG

terminal on Canada’s east coast

SPAIN MADRID-BASED Repsol has decided against and Utica shale plays in the Appalachians
developing an LNG terminal on Canada’s east “Following a study carried out by the com-
The move highlights the coast. The terminal would have exported LNG pany, it was determined [not to] continue with
Ottawa government’s from Saint John in New Brunswick, Canada to the Saint John liquefaction project as the tolls
mixed message on LNG Europe. The move highlights the Ottawa gov- associated to it made it uneconomical,” said a
exports to Europe. ernment’s mixed message on LNG exports to Repsol spokesperson in a statement.
Europe. Following Repsol’s announcement, the Pre-
The Spanish company cited the high costs of mier of New Brunswick, Blaine Higgs, said he
shipping additional gas by pipeline to the Saint was disappointed but was not completely sur-
John LNG terminal, adjacent to an Irving Oil prised but was aware of the high costs.
refinery. “I was anticipating something that would be
The Saint John LNG facility currently imports probably unattractive economically, but obvi-
LNG and regasifies it. It also imports gas by pipe- ously [am] disappointed,” Higgs told reporters.
line from the North-Eastern US. Repsol had “At this point [Repsol is] certainly not able to
been planning to add an LNG export terminal by proceed because of high costs of gas supply.”
around 2026. The new terminal would have dual Repsol’s decision may also put an end in the
regasification facilities plus a liquefaction unit. medium term to Higgs’ long-term ambition to
New pipeline capacity would have been revive shale gas development in New Brunswick.
needed for Saint John LNG to import enough But he denied the concern, telling reporters that
gas for an export facility. Plans for developing or provincial shale gas could “meet our own needs
expanding pipelines in Canadian provinces and and those of allies in Europe.”
the North-Eastern US have faced opposition and Some were not convinced. “[Repsol’s deci-
high regulatory hurdles. sion] would not be good news, for sure,” the
Most of Canada’s natural gas is produced president of the Halifax-based gas trading firm
in Western Canada, thousands of kilometres Energy Atlantica, Todd McDonald, told CBC. “It
away from the east coast. Canada is the world’s would have given a lot of motivation to develop
fifth-largest gas producer. shale gas, because you had an instant [European]
In the US, gas is produced in the Marcellus market with access to high prices.”

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