Gaz Metro Ltd., Enbridge Inc. and Gaz de France are planning a C$700 million liquefied natural gas (LNG) import terminal on the south shore of the St. Lawrence River downstream of Quebec City in Quebec. The Rabaska LNG terminal, which would be designed to send out about 500 MMcf/d of regasified LNG, is expected to be in service in late 2008 or early 2009.

An Enbridge spokesman said that the companies currently are finalizing a partnership agreement and they anticipate formalizing their relationship soon, potentially with Enbridge’s gas distribution subsidiary providing a downstream gas purchase agreement for some of the LNG deliveries and Gaz de France providing the LNG supply and shipping for the project. Enbridge operates the largest gas distribution company in Canada, while Gas de France is one of the world leaders in LNG with two LNG terminals in France, a third under development and six LNG tankers chartered currently.

The proposed Rabaska terminal would be connected via a 30-mile pipeline to the TransQuebec and Maritimes pipeline system in St. Nicholas. Sponsors expected 60 LNG tanker deliveries per year.

The key next steps for the project include preparing and submitting applications with regulators. The company also still must select a location from three possible sites and must buy the land for the terminal facilities and buy the pipeline equipment.

The companies expect to file environmental assessments in late 2004 and an NEB application in early 2005. Design engineering work is now underway and will result in the development of a technical design by early 2006. Public involvement programs and landowner relations programs also are already underway and will continue throughout the next two years. Public hearings are expected to take place in 2005.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.