Am I missing something here. With the recent behaviour of Russia in Georgia and their agenda to hold Europe ransom on energy, and with huge NG capacity projected to come online from the St Lawrence lowlands, why wouldn't the Canadian govt tell the Russians to take a flying leap?? Can we not get by for the next couple of years without this Russian plant?

Thoughts anyone?

Russian LNG Offers New Natural Gas Supply To Ontario And Quebec

Posted on: Friday, 15 August 2008, 03:00 CDT


With limited hydrocarbon resources, Quebec and Ontario must import most of the natural gas consumed. In this regard, the planned Rabaska LNG terminal in the Ville Guay/Beaumont area, located at the limits of the cities of Levis and Beaumont, Quebec, may provide a solution. Gazprom Marketing & Trading USA, Inc. (GMTUSA) and the Rabaska partners, Gaz Metro, Enbridge Inc. and Gaz de France have signed a Letter of Intent under which GMTUSA will become an equity partner in the proposed Rabaska LNG regasification project and contract for 100% of the import terminal's capacity. The parties expect to execute definitive agreements before the end of the year. Using the Rabaska terminal, GMTUSA, a subsidiary of OAO Gazprom, expects to import Russian LNG supplied from the Shtokman liquefaction project under development by Gazprom, which anticipates initial production of LNG in 2014. The Shtokman gas and condensate field, discovered in 1988, is located in the central part of the Barents Sea, approximately 450 km northeast of the city of Murmansk, Russia. The Rabaska terminal is designed to be capable of receiving, storing and re-gasifying imported LNG with a nominal natural gas send-out capacity of 500 MMcf/d.

"The Rabaska LNG project will deliver the critical infrastructure needed to bring an important new source of natural gas supply to Ontario and Quebec," said Stephen J.J. Letwin, executive vice president, Gas Transportation and International for Enbridge. "This new supply will benefit the two provinces' growing number of natural gas consumers, many of whom are customers of Enbridge Gas Distribution, as well as support Ontario's increasing emphasis on natural gas to fuel environmentally responsible power generation. Gazprom's involvement in the Rabaska LNG project gives strong momentum to advancing this project and meeting those needs."

Rabaska has already obtained the key federal and provincial government approvals to proceed with construction of the terminal in Levis. Construction would be timed to meet the anticipated first LNG deliveries in 2014.

Copyright Oildom Publishing Company of Texas, Inc. Jul 2008
(Source: http://www.redorbit.com/news/busines...

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Gazprom Warns Canada Over Rabaska LNG Project
AFX News Limited Monday, September 08, 2008


Gazprom warned Canada that Russia could easily find an alternative market for its liquified natural gas (LNG) if the Canadian authorities try to hinder a deal over the Rabaska LNG project.

Canadian Prime Minister Stephen Harpor said last month commercial natural gas deals with Russia could be put at risk because of Russia's military action in Georgia.

Gazprom Deputy CEO Alexander Medvedev told the 2008 Reuters Russia Investment Summit on Monday those comments had surprised Gazprom.

"We have been surprised by the statement of the Canadian Prime Minister that Canada will reconsider the Rabaska project," Medvedev said.

In May, Gazprom said it was joining Enbridge Inc., Gaz Metro and Gaz de France in developing an C$840 million LNG project in Quebec.

"If there is a nightmare scenario that for some reason this project will be out of reach of realisation based on a Canadian political decision, then for us it will be easy to find an alternative destination for our LNG," Medvedev said.

"But it will not be good for Canada because they will face a shortage of natural gas."

The project would involve Gazprom taking a unspecified stake in the Rabaska LNG terminal on the St. Lawrence River at Levis, across from Quebec City.

Medvedev said Rabaska's management had assured Gazprom the Canadian Prime Minister's statement would not hinder the finalisation of the project.

"We are happy Rabaska management do not think this statement is a barrier for finalising the transaction with Gazprom," Medvedev said.

The 500 million cubic feet of gas a day from the plant would supply the Quebec and Ontario markets.

The project is scheduled to go ahead in 2014, coinciding with the planned start of a liquefaction plant at Russia's Shtokman natural gas field, located in the Barents Sea.

(Source: http://www.rigzone.com/NEWS/article....