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Canada's New Brunswick restarts Saint John LNG talks

  • Märkte: Natural gas
  • 02.09.25

Canada's New Brunswick (NB) provincial government has approached Canadian pipeline operator TC Energy and Spanish energy firm Repsol to reopen talks on the proposed 2mn t/yr Saint John LNG export terminal, the NB minister of natural resources John Herron told Argus today.

The site is currently home to the 7.5mn t/yr Saint John LNG import terminal — previously known as Canaport LNG before Repsol's acquisition in 2021. Repsol abandoned a proposal to develop a liquefaction facility in Saint John in 2023, citing overly high tolling costs to transport gas from the production basins in western Canada and uncertainty in natural gas supplies.

But the situation is different now, and discussion with TC Energy and Repsol is ongoing, Herron said.

Canada and Germany signed a joint declaration last week to advance co-operation in energy, and have begun discussions for LNG sales.

The new administration under prime minister Mark Carney is more supportive of the resource industry, said Herron, with new plans to streamline the permitting process for projects deemed of national interest in just 24 months.

And Saint John LNG already has some LNG infrastructure associated with the import terminal, including three storage tanks equivalent to 220,000t of LNG, and a jetty capable of berthing Q-Flex and Q-Max vessels. And because the import terminal is underutilised, some of the infrastructure may also serve the proposed export terminal.

The import terminal only received 286,000t and 176,000t of LNG respectively in 2024 and 2023, data from vessel tracker Kpler show. The import terminal operates well-below its nameplate capacity because it operates as the LNG importer equivalent of a "peaker plant", typically only receiving most of its cargoes during high-demand winter to serve the Canadian Maritimes and the northeast US.

And Saint John would be able to receive conventional LNG carriers year-round, and a one-way journey to northwest Europe would take around eight days, assuming an average speed of 16kn.

Still, there are major hurdles, namely the lack of pipeline infrastructure to transport gas from the western producing basins to the east, as TC Energy's Canadian Mainline — the only gas route across the country — ends at the Canadian border with Vermont.

For the project to be feasible, there would need to be new gas pipeline infrastructure across Quebec, and likely a new regulated tolling agreement because the LNG would need to be cost-competitive with production from the US Gulf, said Herron.

The TC Energy Canadian Mainline is underutilised because of high tolling costs, but the operator has a five-year tolling agreement in place which is due to expire in December 2026, which includes a 20pc reduction in fees on the western portion of the system to incentivise more flows.


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