On the heels of rejection by the Quebec government of a liquefied natural gas (LNG) proposal, Energie Saguenay has run into another negative opinion by a federal regulator.

The latest rejection follows one in July by the province’s Environment Ministry for GNL Quebec’s proposed terminal and Gazoduq pipeline. 

“The project is likely to cause direct and cumulative significant adverse environmental effects,” according to a draft assessment issued Wednesday by the Impact Assessment Agency of Canada (IAAC).

The agency’s 269-page report, similar to the province’s rejection, identified “significant effects” on greenhouse gas emissions, marine mammals such as beluga whales, and the Innu First Nations. The proposed LNG terminal site is 277 miles east of...