Quebec LNG Venture Faces Local Opposition Amid EU Supply Glut Fears
A new joint venture in Quebec, Kino Aski LNG Inc., aims to develop an export terminal at the Port of Baie-Comeau to send liquefied natural gas (LNG) to Europe. The project, led by Indigenous-owned company Kino Aski Inc., plans to export up to 15 million tonnes of LNG per year and will be powered by renewable electricity.
The venture has sparked local opposition, with environmental groups arguing that the project would lead to deforestation, fragmentation of wildlife habitats, and water pollution. Quebec has a history of rejecting similar projects, including the Energy East pipeline and the GNL Québec LNG project.
Analysts are also skeptical about the future demand for new LNG supplies in Europe, citing predictions of an impending supply glut due to existing projects under construction in the US, Qatar, Africa, and Canada. According to IEEFA's Ana Maria Jaller-Makarewicz, if the EU continues with policies to reduce gas consumption and scale up renewables, it could replace Russian gas imports without increasing overall gas imports.