Saguenay natural gas project has more risks than rewards, environment office finds

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The risks outweigh the rewards when it comes to a controversial $10-billion natural gas liquefaction project for Saguenay, a report made public Wednesday by Quebec’s Bureau d’audiences publiques sur l’environnement (BAPE) has concluded.

The GNL Québec mega-project, which is supported by the Legault government, would see natural gas from western Canada moved by pipeline to Saguenay where it would then be liquefied and sent overseas by ship via the Saguenay fjord.

During the extremely polarized debate that occurred in public hearings on the project, the BAPE found that it could not determine whether the plan enjoyed social acceptability — a prerequisite for government authorization.

All opposition parties in the National Assembly are against the project. Last week the Liberals joined those opposed, after initially supporting the plan during the 2018 election campaign.

No other hearing organized by the BAPE has drawn a higher rate of participation. A total of 2,500 briefs were filed with the office — 91 per cent of them against the project.

The BAPE questioned the project’s argument that there would be a net reduction in greenhouse gases because natural gas would substitute more polluting energy sources overseas. It said the extraction and liquefaction of gas in Saguenay would generate about 7.8 million tonnes of carbon dioxide annually, wiping out in a single year all gains made by Quebec since 1990 to reduce greenhouse gas emissions.

The BAPE noted also that during the four-year construction phase of the project, 6,000 jobs would be created directly and indirectly, while 1,350 would be created once operations begin.

The BAPE also noted the increased risks maritime traffic could pose to marine mammals in the Saguenay River and St. Lawrence Estuary.

In a statement, GNL Québec said it would respond to the concerns raised in the report.

“We know that we have work to do, but we are still convinced our project can make a difference on a global scale and it forms part of a range of solutions that will foster … success in this necessary battle against climate change,” said Tony Le Verger, vice-president finance and development and interim president of GNL Québec.

Énergie Saguenay failed to demonstrate that public opinion was favourable, that the project served to reduce greenhouse gas emissions and that it would accelerate the transition to clean energy, which are the three conditions set by the government, Environment Minister Benoit Charette said.

The group had several chances to show the validity of its arguments and “it did not succeed,” Charette said. Énergie Saguenay has until this summer to submit counter-arguments. The minister will submit his environmental evaluation this summer, after which the government will decide whether to authorize the project.

In Ottawa, Richard Martel, Conservative MP for Chicoutimi-Le Fjord, said the BAPE “did not reject the project, but asked GNL Québec to show its positive impact on a global scale.” He said he is confident the group will be able to demonstrate this.

Bloc Québécois Leader Yves-François Blanchet, meanwhile, said the report makes it clear the project will never be built.