Canada oks Petronas LNG project

Canada's Liberal government gave the go-ahead to the Petronas deal worth Can$36 billion ($27 billion, 24 billion euros), which includes a pipeline and two terminals to ship liquefied natural gas (LNG) to Asia.

The government attached about 190 conditions - most of them to protect the environement - on its first decision on a major energy project since a pro-environment campaign swept Prime Minister Justin Trudeau to power last year. 

Environment Minister Catherine McKenna described the project as an "important opportunity to grow our economy," and said it would re-build trust the country's environmental assessment process.

"As the prime minister has emphasized, the only way to get resources to market in the 21st century is if it is done sustainably and responsibly. Today's announcement reflects this commitment," she added.     

Public resistance

Prime Minister Justin Trudeau has repeatedly said that the economy and environment should be pursued in parallel, without sacrificing one for the other. But Canadian environmental groups worry the pollution created will worsen global warming and destroy nature.

"How can Prime Minister Trudeau claim to be a climate leader on the international stage, while approving this new project that will become the single largest source of climate pollution in the country," said Karen Mahon, national director of Stand. This government cannot make decisions like this while honoring their promises on climate change."

Also Canada's First Nations indigenous people are concerned about potential sullying of fishing waters. The deal means heavy LNG traffic through a maze of islands where salmon is a vital resource. "

"We will state our adamant opposition to this. The next step for us is litigation," John Ridsdale, a hereditary leader with the Wet'suwet'en, known as Chief Na'Moks, told the news agency Bloomberg.

The two gas terminals - planned to be built on Lelu Island, near Prince Rupert on the Pacific coast - will have a combined capacity of 12 million tons per year, with the possibility of adding a third down the road.

The pipeline built by the operator TransCanada must cross 900 kilometers of British Columbia between Hudson's Hope and ending at Lelu Island. The pipeline deal comes after Petronas in late 2012 acquired Canada's Progress Energy Resources gas producer for $5.2 billion.

     

uhe/jd (AFP, Bloomberg)