Re-gasification plant Gros Cacouna

The end of Energy Cacouna

Nov 28, 2009
The Cacouna proponents, TransCanada and Suncor Energy (successor to Petro-Canada), have decided not to extend the option to lease the Cacouna Project site. As explained earlier this year, the project is on hold based on global economics and the supply/demand market for natural gas. We believe that those fundamentals are not likely to change significantly in the near future.

Cacouna remains an option for a future liquid natural gas (LNG) terminal, but current market conditions do not support any current activity. We appreciate the support from the local community and regret that conditions don't exist for us to build the terminal at this time.

Source: Cacouna Energy's web site (web site no longer on line 2010)

On Sep 10, 2004, the announcement of a memorandum of understanding (MOU) to develop a liquefied natural gas (LNG) facility was released. This new proposed facility named Cacouna Energy would be capable of receiving, storing, and regasifying imported LNG.

This announcement is seen by many as an important economic boost and the source of creation of much needed jobs for the region. Those who favour the environment, quality of life and the preservation of the unique look or vocation of the village/parish as a "authentic world where a well-preserved architectural heritage are blended into the remarkable landscapes" are very nervous about what the future has in store for our region.

Vision Cacouna is a regrouping of citizens opposed to the project proposed by Energie Cacouna.
The "YES" Committee is a regrouping of citizens which finds in this project "a solution for the future".

Result of the referendum which was held on September 25, 2005 for the citizens of the village:

Are you in favour of the development of a liquefied natural gas facility at Gros-Cacouna?

YES: 57,2% and
NO 42,8%

Cacouna Energy will close the Cacouna office

Source: Cacouna Energy

On December 31, 2008 Cacouna Energy will close the Cacouna office for an indefinite period. Supply shortages, capital cost pressures, excess North American regas capacity and world-wide natural gas economics have put a strain on the development of liquid natural gas (LNG) import projects in North America.

The project is not cancelled. We expect that world market supply conditions for LNG will improve and permit us to move ahead with the project. The partners, Petro-Canada and TransCanada, continue to believe that the site chosen is well suited for a future LNG import facility.

We very much appreciate the continual support from the local community. Input by local stakeholders has been a valued, critical component of this project from the onset. We regret that conditions don't exist for us to build the terminal at this time, and we look forward to the opportunity to develop this project in the future.

Gazprom drops Baltic LNG, Petro-Can plant in limbo

By Maria Kiselyova and Jeffrey Jones
07 February 2008
Source: reuters

MOSCOW/CALGARY, Feb 7 (Reuters) - Russia's Gazprom has scrapped plans for a $3.5 billion liquefied natural gas plant on the Baltic Sea, the firm said on Thursday, dashing the hopes of international companies aiming to join the project.

The move forced Petro-Canada, one of the firms Gazprom was considering as a partner, to rethink a $1 billion regasification terminal it has been planning to build in Quebec.

Gazprom had previously said Calgary-based Petro-Canada, BP Plc and Italy's Eni were among firms short-listed for the St. Petersburg-area project, which could have begun shipments of 5 million tonnes of super-cooled gas annually around 2013.

"A detailed analysis of the Baltic LNG project showed that the construction of the Nord Stream gas pipeline and exploration of the Shtokman field, which also foresees production of LNG, are more competitive projects," Gazprom said in a statement.

"In this connection a decision has been made to focus the main company's resources on realization of these priority projects," the company said.

As recently as two weeks ago, the Russian export gas monopoly said it planned to announce a partner in February.

The cancellation surprised Petro-Canada, which had hoped to use LNG from the Baltic development as a long-term source for the Gros Cacouna regasification terminal on the St. Lawrence River. Its 50-50 partner in that proposal is TransCanada Corp

"As the potential anchor supply for the Cacouna terminal, Gazprom's decision not to pursue Baltic LNG is disappointing to us and we are reviewing the impact of this decision on our LNG strategy with our project partner," spokesman Kyle Happy said.

"Without the anchor supply in place, we'll have to reconsider our options for developing the site," he said.

The company, Canada's No. 4 oil producer and refiner, had already been holding off making expenditures at Gros Cacouna pending the confirmation of long-term LNG supplies.

Gazprom's move likely spells the end of the Canadian proposal, first envisioned when North America was seen as as a competitive region for LNG consumption, said FirstEnergy Capital Corp analyst William Lacey.

That is no longer the case, and the project's cost estimate has since climbed by more than 50 percent.

"My feeling is that it's done, but we'll see," Lacey said.

NEB approves Gros Cacouna receipt point application

Source: CNW TELBEC
17 July 2007

The National Energy Board (NEB) approved today an application by TransCanada PipeLines Limited (TransCanada) for the receipt of natural gas from a liquefied natural gas (LNG) regasification terminal at Gros Cacouna, Québec.

The NEB also determined how the tolls for services would be calculated from this new receipt point. The application for a new receipt point was submitted as a way to accommodate a request by Petro-Canada Oil and Gas (Petro-Canada) who plans to transport natural gas from the Gros Cacouna LNG Terminal using TransCanada's Integrated System. The addition of the Gros Cacouna receipt point on the Integrated System will only become effective if and when all the required facilities are approved and ready to go into operation. The application for such facilities has not yet been filed. The NEB took into consideration the fact that TransCanada had obtained a precedent service agreement from Petro-Canada consisting of the following guarantees:

<<
- A 20 year service commitment for firm transport demand charges; and - A compensation package for expenses sustained by TransCanada for developing the necessary facilities, should the service request be withdrawn.
>>

Given the long lead time and uncertainty associated with proposed LNG projects, the NEB agreed that having negotiated a service agreement was a prudent measure and would help to protect existing shippers from risk and expense.In its decision, the NEB approved the applied-for toll methodology for service from the Gros Cacouna receipt point which, in essence, reaffirms the existing rolled-in tolling methodology on TransCanada's Integrated System. A rolled-in methodology means that all extension costs are rolled into a single, existing cost pool and charged to all shippers. The NEB also decided that reasonable costs required to provide service from Gros Cacouna could be recovered, but a determination of such costs could only be made as part of a future application.

The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

This news release and the Reasons for Decision are available on the Board's Internet site at www.neb-one.gc.ca under What's New!

For further information: Carole Léger-Kubeczek, Communications Officer,
Email: clegerkubeczek@neb-one.gc.ca, Telephone: (403) 299-2717; For a copy of
Reasons for Decision: National Energy Board, Publications, Ground Floor, 444
Seventh Avenue SW, Calgary, Alberta, T2P 0X8, Telephone: (403) 299-3561,
Telephone (toll free): 1-800-899-1265, Telecopier: (403) 292-5576, Telecopier
(toll free): 1-877-288-8803, E-mail: library@neb-one.gc.ca

THE NEW GOVERNMENT OF CANADA RESPONDS FAVOURABLY TO THE REPORT OF THE ENVIRONMENTAL ASSESSMENT JOINT REVIEW PANEL FOR THE CACOUNA ENERGY LIQUEFIED NATURAL GAS TERMINAL PROJECT AT GROS-CACOUNA

No. Q 006/07
For release June 27, 2007
Source: www.tc.gc.ca.

GROS-CACOUNA (Quebec) – The new Government of Canada announced today that it responds favourably to the report of the Environmental Assessment Joint Review Panel for the proposed project to establish a Cacouna Energy Liquefied Natural Gas (LNG) Terminal at Gros-Cacouna. The Government of Canada is in a position to support the general conclusion of the report after having examined the Panel's recommendations.

"This potential LNG terminal would bring a new dimension to the local economy and at the same time create significant benefits for all of Quebec and eastern Canada," said Minister Cannon. "Regional ports are often the main development instrument in many regions and we must fulfill their full potential."

Drawing on the Panel's report, the Government of Canada concludes that the developer can pursue its efforts toward the eventual implementation of the Cacouna Energy LNG Terminal Project. As responsible authorities by virtue of the Canadian Environmental Assessment Act, Transport Canada and Fisheries and Oceans Canada will ensure that the developer implements all the mitigation measures identified in the report, as well as the required monitoring and review programs. The Government of Canada is of the opinion that implementation of the mitigation measures and appropriate reviews to be instituted by the developer will allow the environmental impacts identified in the report to be taken into account.

"Fisheries and Oceans Canada supports the Government of Canada's response to the Joint Environmental Assessment Panel," said the Honourable Loyola Hearn, Minister of Fisheries and Oceans. "Fisheries and Oceans Canada is committed to protecting all marine resources in the Saint Lawrence Estuary and will ensure that all mitigation measures and monitoring activities are implemented."

The Government of Canada's acceptance of the basic recommendations of the Joint Review Panel's report allows the responsible authorities to exercise their regulatory attributions and proceed with the issuance of permits required under the Navigable Waters Protection Act and the Fisheries Act and eventually proceed with the signing of a lease. In this regard, Transport Canada and Fisheries and Oceans Canada will maintain close ties with the authorities involved in the project, throughout the process of issuing the required permits and other legal authorizations.

The Cacouna Energy company, made up of TransCanada Pipelines Limited and Petro-Canada, announced on September 1, 2004 its plan to build a liquefied natural gas terminal at the port of Gros-Cacouna. The project involves importing liquefied natural gas by sea and reconverting it to natural gas.

NEB to Review TransCanada Tolls Application For a New Receipt Point at Gros Cacouna

Source: CNW TELBEC

CALGARY, Jan. 22 /CNW/ - The National Energy Board (NEB) will hold an
oral hearing to review an application by TransCanada PipeLines Limited
(TransCanada) for approval of the method that would be used to determine tolls
for services from a new receipt point. This new receipt point would allow the
reception of regasified liquefied natural gas (LNG) from Gros Cacouna, Québec.
As outlined in its application, TransCanada expects future applications
to be filed with the NEB for approval of the construction of the pipeline
facilities required to connect the Gros Cacouna receipt point to its
integrated pipeline system.

An oral hearing for the current application is scheduled to begin on Monday 16 April 2007 in Québec City at a location yet to be determined. Interested persons can participate in the public hearing in one of two ways:

<<
(i) by seeking intervenor status, or
(ii) by filing a letter of comment.
>>

To be considered for intervenor status, applications must be submitted by noon (MST), 2 February 2007. The deadline for letters of comment is noon (MST), 5 March 2007. The above documents must be filed with the Secretary of the Board, and a copy sent to TransCanada and its counsel. Please note that on-line application forms are available on the NEB's Internet site at www.neb-one.gc.ca. Click on "Submit a Document", scroll down to "Applying to participate in an NEB Hearing" and select the option of your choice. The hearing will be broadcast live over the NEB's Internet site. Anyone wishing to listen to the daily proceedings should log onto www.neb-one.gc.ca and follow instructions under "Hearings".

The NEB is an independent federal agency that regulates several aspects of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

This news release and the Hearing Order are available on the Board's Internet site at www.neb-one.gc.ca under What's New!

For further information: Carole Léger-Kubeczek, Comunications Officer,
Telephone: (403) 299-2717, TTY (teletype): 1-800-632-1663; For a copy of the
RH-1-2007 Hearing Order: National Energy Board, Publications Office,
Telephone: (403) 299-3562, Email: publications@neb-one.gc.ca

Cacouna: beluga whales are not worth much according to BAPE report

14 December 2006

The joint report of the provincial BAPE (Quebec's environmental public hearings commission) and the federal joint commission concerning the Énergie Cacouna project was made public on December 12. It concluded that the construction of a liquefied natural gas terminal in Cacouna be conditional to approval of the projected pipeline on which it would depend. The pipeline has not yet been subjected to a public environmental review and is already raising concerns for groups and individuals who came forward during hearings into the Énergie Cacouna project.

The commission also concluded that uncertainties subsist with respect to the effectiveness of mitigation measures proposed to deal with noise during the construction phase of the project. In fact, according to Robert Michaud of the Group for Research and Education on Marine Mammals (GREMM), noise during construction could seriously affect beluga whales, forcing a community of gestating females and their offspring to abandon essential habitat and creating risk of injury. Based on these reasons, GREMM recommended that no construction work take place during the months of June through October. This recommendation was not adopted in the commission's report.

The St. Lawrence beluga whale is an endangered species. The population has shown no signs of growth since hunting stopped, even though there is nothing to indicate an abnormally high mortality rate. It therefore appears that this population is having reproductive problems and that contamination, stress or habitat loss could be to blame. The waters off Cacouna represent the territory of one of the three female St. Lawrence beluga whale communities. They return between June and October to give birth to their calves and to raise them during their first months of life.

The absence of firm recommendations to protect female beluga whales and their calves during the construction period worries GREMM researchers. If the project goes forward, responsibility to manage construction work in the marine environment falls to Fisheries and Oceans Canada (DFO), which could then choose to impose measures to protect the beluga whales and this critical habitat. Before this stage, Québec City and Ottawa must analyze the commission's report and make their decision known as to the continuance of the project. [BAPE, GREMM]

Energy Cacouna - Construction of a Liquefied Natural Gas Terminal Project - The panel report is made public

OTTAWA/QUEBEC, Dec. 12, 2006/CNW Telbec/ -

At the request of the federal Minister of the Environment, the Honourable Rona Ambrose and of the ministre du Développement durable, de l'Environnement et des Parcs, M. Claude Béchard, the report produced as a result of the investigation and of the public hearings on the TransCanada Pipelines Limited and Petro-Canada Cacouna Energy Liquefied Natural Gas (LNG) Terminal Project has been made public. This mandated investigation and public hearing took place from May 8 to November 1, 2006. The BAPE Panel was chaired by Mr. Michel Germain, assisted by Mr. John Haemmerli. Mr. Jean-Thomas Bernard joined the panel to form the Joint Review Panel. Both panels carried out their work simultaneously and produced a joint report. This report contains the 36 notices and 39 recommendations made by the Panel. The panel collected participants' concerns and opinions during the hearing and considered the following: -

The liquefied natural gas system;

THE FEDERAL DECISION-MAKING PROCESS

Following a rigorous review of the Panel's report, Transport Canada (TC) and the Department of Fisheries and Oceans (DFO) will prepare a response for Cabinet's consideration. TC and DFO may issue their authorizations following Cabinet approval of the Government response.

QUEBEC'S DECISION-MAKING PROCESS

In light of the Panels' joint report and the environmental review prepared by his department, Quebec's Minister of Sustainable Development, Environment and Parks will make his recommendations to Quebec's Cabinet, which is responsible for the final decision concerning the project. This decision could be to authorize the project, with or without changes and under conditions which he determines, or to refuse it. Since the project is subject to a cooperative environmental assessment, pursuant to the Canada-Quebec Agreement on Environmental Assessment Cooperation, there may be coordinated decisions and announcements by Canada and Quebec.

THE CANADA-QUEBEC AGREEMENT ON ENVIRONMENTAL ASSESSMENT COOPERATION

The Canada-Quebec Agreement on Environmental Assessment Cooperation fosters cooperation and coordination between the parties concerning the environmental assessment of projects subject to an environmental assessment by Canada and Quebec in order to meet the requirements of the Canadian Environmental Assessment Act and of the Quebec Environment Quality Act. For participants in this session of public hearings, the means of participation were identical to a public hearing held solely by the BAPE, since the proceedings conformed to the BAPE's Rules of Procedure relating to the conduct of public hearings.

VIEWING THE REPORT

The report is available for consultation at BAPE documentation centers, consultation centers in the area under study and on the BAPE Web site at www.bape.gouv.qc.ca .

The report is also available directly by e-mail at communication@bape.gouv.qc.ca, or by telephone at (418) 643-7447 or toll free at 1 800 463-4732. The report is also available on the Canadian Environmental Assessment Registry at www.ceaa-acee.gc.ca , reference number 04-07-7440. During the first part of the public hearing, the panel held seven public meetings at Rivière-du-Loup. In the second part, in Cacouna, seven public meetings made it possible for the panel to receive 91 submissions and 2 oral interventions from individuals, groups, organizations and municipalities interested in the project.

For further information: about the federal process: Nicholas Girard, Senior Communications Advisor, Canadian Environmental Assessment Agency, (613) 957-0396 nicholas.girard@acee-ceaa.gc.ca;

Sources: Jean-Sébastien Fillion, Communications Officer, Bureau d'audiences publiques sur l'environnement, (418) 643-7447 or 1-800-463-4732, extension 538, jean-sebastien.fillion@bape.gouv.qc.ca

Russia is key to LNG terminal

Petro-Canada has reached the crunchpoint in negotiating the import Russian liquefied natural gas to a $700-million terminal at Gros Cacouna, Que., on the Lower St. Lawrence.

"We could sign the key long-term supply contract with Russia's Gazprom in the next week or two," said Graham Lyon, Petro-Canada International's vice-president of business development, in London.

Then Petro-Canada's ownership participation in a $1.5 billion U.S. Gazprom liquefaction plant to be built near St. Petersburg could be decided, along with leasing of LNG carriers. The project has a planned 2010 start-up and the gas would be fed into the Trans-Canada trunkline system mostly for sale in the Quebec and Ontario markets, said Lyon.

Petro-Canada would take about 70 per cent of the gas available from the St. Petersburg liquefaction plant, said Lyon. With capacity of 5-million tonnes, it may well have other owner-partners and ship elsewhere than Canada..

rgibbens@thegazette.canwest.com
© The Gazette 2006

Petro-Canada in LNG deal with Gazprom

PETRO-Canada said on Tuesday it and partner OAO Gazprom are planning a liquefied natural gas (LNG) plant near St Petersburg, Russia, worth up to US$1.5 billion (US$1 = RM3.71), that would supply gas to Petro-Canada and other customers by 2010.

The two companies will go ahead with engineering studies for the proposed Baltic gas liquefaction project to provide cost, size and timing for the plant, Petro-Canada said in a statement. The preliminary work is expected to be completed by year-end.

Most of the gas produced by the proposed plant would be shipped to the planned Gros Cacouna re-gasification plant in Canada owned by Petro-Canada and TransCanada Corp.

There are dozens of new LNG import terminals planned for the US and Canada as demand for the fuel rises while North American supplies are dwindling. However few of those facilities have locked up the offshore gas needed for their projects.

Indeed, Anadarko Petroleum Corp said on Tuesday it would delay construction of its US$650 million Bear Head LNG import terminal in Nova Scotia while it tries to secure gas supplies for its project.

Teaming up with Russia’s Gazprom, the world’s biggest gas producer with daily production of 58.5 billion cu ft, will give the Gros Cacouna project a guaranteed gas supply. That facility, on the south shore of the St Lawrence River outside Riviere-du-Loup, Quebec, will supply up to 500 million cu ft a day of imported natural gas to eastern Canada and the US Northeast.

“Gazprom produces more than three times Canada’s total gas production,” said Martin Molyneaux, an analyst with FirstEnergy Capital Corp in Calgary. “But Petro-Canada will bring marketing expertise and a location to land the gas in North America.” — Reuters

The project

Source: Cacouna Energy

The facility wouldl have the following components:

• A Receiving Terminal. A wharf with unloading arms, mooring and breasting dolphins extending approximately 350 metres into the river from the shoreline.

• Two LNG storage tanks with a capacity of 160,000 cubic metres each.

• Regasification Facilities that would warm the LNG back to its gaseous state and deliver it to the pipeline system.

• Buildings, Roads and Parking Areas

• Nitrogen production equipment

Related Project

There is one other project associated with the facility that would be undertaken separately and not by this partnership.

• The construction of a 240-km pipeline to transport the regasified LNG to the existing pipeline network