Repsol SA has scrapped plans to export LNG from the Saint John import terminal in New Brunswick because of a lack of natural gas supplies and the costs to move it to the facility.

The company stated that it would shelve the plan to tap into European demand after a feasibility study confirmed that tolls for long-distance pipeline delivery to New Brunsswick on Canada’s east coast would be too high.

The company noted in a filing, approved by regulators last month to extend an export license, that the main hurdle would be securing feed gas supplies as offshore production in Eastern Canada has dried up. Pipeline capacity to deliver supply to the terminal, which currently has the capacity to import 7.4 million metric tons/year of liquefied natural gas, does not exist, it noted....