FERC resists Canada’s request to block LNG analysis

The Federal Energy Regulatory Commission has responded amicably but firmly to the Canadian government’s stated opposition to and intent to take legal action against two proposed liquefied natural gas terminals in Washington County.

In a letter to Michael Wilson, the Canadian Ambassador to the U.S., FERC Chairman Joseph T. Kelliher said he welcomes Canada’s input on the projects, but his staff will continue to prepare environmental impact statements for Downeast LNG in Robbinston and Quoddy Bay LNG in Perry.

“Because neither Quoddy Bay nor Downeast LNG have amended or withdrawn their applications, the FERC staff is continuing the process of preparing an environmental impact statement for each project that will address the environmental impacts and the maritime safety and security of the projects,” Kelliher said.

Kelliher’s letter, dated March 2, was written in response to a letter Wilson wrote on behalf of the Canadian government Feb. 14. In his letter, Wilson said that based on perceived environmental and safety risks, the Canadian government would not permit LNG tankers to pass through Head Harbor Passage.

Kelliher acknowledged a promise he made last year to accept input from Canadian agencies during the FERC review process. He also requested public release of the environmental and navigational safety study the Canadian government referred to in its Feb. 14 letter.

“We have high safety standards and apply them rigorously. However, we need the facts to conduct our safety review,” Kelliher wrote.

The private Canadian study concluded the tankers “present risks to the region of southwest New Brunswick and its inhabitants that the Government of Canada cannot accept,” Wilson wrote.

The LNG developers said Wednesday they were pleased with Kelliher’s letter.

Quoddy Bay LNG project manager Brian Smith said the content of Kelliher’s letter was not a surprise.

“We were assured by FERC and other government agencies that they would continue to process these applications as they are the correct processes to permit these facilities,” Smith said. “We are continuing the permitting process on the assumption that the laws of the sea will be applied as they are intended.”

Downeast LNG President Dean Girdis said Kelliher’s letter “highlights the hypocrisy of the Canadian government’s position.”

“Despite the Canadian government’s request to participate in the review process, there’s a failure on the part of the agencies to provide information and actively participate in the review process,” Girdis said.

Kelliher requested that the appropriate Canadian environmental, coastal and navigational safety agencies assist FERC and the U.S. Coast Guard as they continue their analysis of the projects.

But Linda Godfrey, coordinator of local LNG opposition group Save Passamaquoddy Bay, said Kelliher’s letter underestimates Canada’s stake in the LNG review process.

“Canadian citizenry and Canadian assets are at risk from these two projects,” Godfrey said in a prepared statement. “The proposed Passamaquoddy Bay LNG projects hold no benefit for Canada.”