Quebec upheld its reputation as no-go territory for fossil fuel projects Wednesday by denying environmental approval for a US$10.6 billion liquefied natural gas (LNG) export plan.

GNL Quebec’s proposed Energie Saguenay terminal and Gazoduq pipeline failed to prove it would cut global greenhouse gas emissions, provincial Environment Minister Benoit Charette said in announcing the rejection.

The decision ended hope for LNG exports of Western Canadian gas from Canada’s Atlantic seaboard. Pieridae Energy Ltd. earlier this month shelved the only other active East Coast proposal — the US$10 billion Goldboro LNG project in Nova Scotia.

The Quebec decision did not surprise the Alberta-based Canadian oil and gas industry, where the LNG plan’s fate is seen as just the latest...