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An Atlantic Canada utility has challenged the plan by Repsol SA to transform its New Brunswick arm, Saint John LNG Improvement Co. (SJLNG), from an import web site into an export terminal for energy-starved Europe.
Nova Scotia gasoline distributor Eastward Power Inc. has urged the Canada Power Regulator (CER) to require an east coast market evaluation earlier than granting SJLNG a six-year export license extension to design, win approval and construct the proposed conversion.
Final 12 months, Repsol turned the only proprietor of the Canaport liquefied pure import terminal at Saint John in New Brunswick. The ability then was renamed Saint John LNG.
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Eastward administration pointed to the US for examples of provide disruptions liable to outcome from an SJLNG determination as experiences have been accomplished in 2015 to help the present license stay legitimate.
“This might result in the same challenge seen in Texas and different Midcontinent states” in February 2021’s Winter Uri storm, executives stated. They cited the “provide facet constraints as a result of a polar vortex,” which “led to buyer outages and spikes,” with hovering spot costs.
Eastward executives additionally famous a written attraction final month to President Biden by New England distributor Eversource Power calling for provide safety this winter.
“Shoppers in New England are already experiencing skyrocketing electrical energy and gasoline prices given provide constraints and world value pressures following the Russian invasion of Ukraine,” Eversource CEO Joseph Nolen said within the letter.
“Regional gasoline pricing is predicated on Algonquin Citygate,” which is in New England and “is commonly the highest-priced pure gasoline market in North America,” administration stated. “Throughout vital chilly climate occasions, this market has traded at a spot value of US$100/GJ or extra. with SJLNG imports accessible to the market.”
The corporate stated since 2015, Atlantic Canada has develop into an importer of U.S. and Western Canadian pure gasoline by way of the Maritimes & Northeast Pipeline. Offshore manufacturing led to 2018, and New Brunswick, Nova Scotia and Quebec banned hydraulic fracturing to interchange wells.
Whereas the CER didn’t instantly reply to Eastward’s request for an up to date East Coast market evaluation, regulators have questioned the SJLNG determination.
“Repsol is a participant within the world power market and the actual fact it’s evaluating including liquefaction functionality to the SJLNG terminal clearly demonstrates that market members reply to market alerts and develop tasks to fulfill provide and demand wants,” CER stated.
“This very challenge offers clear proof that the market is certainly working,…
“SJLNG doesn’t see any constraints that can affect the free functioning of the markets ought to the requested extension be granted. Provide-demand market forces will proceed to make sure growth happens, as wanted.”
SJLNG is aiming for preliminary exports of 300 MMcf/d, or solely 40% of the focused volumes that have been in a earlier model of the challenge. Deliveries might start round Might 2032, which might permit for planning, regulatory approval and building levels.
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