Repsol in New Brunswick signs major LNG deal

Posted Oct. 08, 2010, at 6:49 a.m.

After several years of negotiations, a Spanish corporation has signed a multi-year supply agreement to ship liquefied natural gas to an LNG terminal at St. John, New Brunswick.

Spain’s Repsol YPF, S.A., Spain’s top oil and gas company, has reached an agreement with Qatargas Operating Co. Ltd. to ship liquified natural gas to the Canaport LNG terminal in Saint John.

The deal is important to Maine because Canadian officials have threatened to block LNG tankers from passing through Head Harbor Passage enroute to terminals proposed for Robbinston and Calais, Maine.

New Brunswick Premier Shawn Graham last year wrote of the Maine plan:

“The province’s position remains unequivocal: We oppose the proposed locating of an LNG terminal in Passamaquoddy Bay because of its impacts on New Brunswick,” Graham wrote in a commentary published in the Telegraph-Journal newspaper in Saint John, New Brunswick.

“Our environment would be negatively affected, the tourism and environment-based economy of the region would suffer, and the safety and security of the region could be compromised.”

Supporters of an LNG project in Maine say they believe that Canadian officials are more concerned with protecting their own LNG industry than with the safety and environmental issues raised in Graham’s commentary.

The Canaport LNG terminal has received liquefied natural gas shipments from Trinidad and Tobago, Peru, Egypt and Norway, according to the Telegraph-Journal.

The vessels that would deliver the fuel are the largest LNG tankers in the world, with the largest capable of carrying about 5.6 billion cubic feet of natural gas.

http://bangordailynews.com/2010/10/08/news/repsol-in-new-brunswick-signs-major-lng-deal/ printed on July 24, 2014