Canada stands firm against LNG tankers

ST. STEPHEN, New Brunswick – Canada is resolute in its opposition to the transit of liquefied natural gas tankers through Head Harbor Passage on their way to terminals proposed for Maine and is prepared to use “all legal and diplomatic channels” to prevent it, a government spokesman said Monday.

Member of Parliament Greg Thompson, at a meeting of the St. Stephen Rotary Club, noted that good relations exist between Canada and the United States on other issues, but he said Canada stands firm in its opposition to LNG tankers. The Canadians maintain that the water around Head Harbor Passage near Campobello Island is sovereign territory and subject to their jurisdiction.

“When we take the position on LNG and saying no to the transport of liquefied natural gas ships through Head Harbor Passage, we’re doing it because we believe it’s not a safe location, it’s not a smart location, and we are doing it for all of the right reasons,” Thompson said. “We have an obligation to protect our citizens, to protect the environment and to protect our economy.”

The Canadian government has backed its position by citing a study it commissioned to review the navigational safety, environmental and other impacts the LNG projects could have on Canada.

LNG developers and the U.S. Federal Energy Regulatory Commission have criticized Canada for not releasing the study, but on Monday a spokesman for Thompson said the Canadian government plans to submit the study to FERC in the next month.

Thompson hopes Americans are listening because he says the Canadians have stated their case in polite and plain language. It’s language “that I think Harry Truman would be quite proud of,” he said, referring to the 33rd president, who was known for his “plain speaking.”

But on Friday, the U.S. State Department rejected Canada’s assertion that it would not let LNG tankers travel through Head Harbor Passage on their way to terminals proposed for Washington County, Maine.

Although Canada may adopt laws and regulations in respect to the safety of navigation and the regulation of maritime traffic, all vessels enjoy a nonsuspendable right of innocent passage into and out of Passamaquoddy Bay through Head Harbor Passage, U.S. officials said.

Thompson disagreed. “We are aware of this latest letter and the U.S. State Department’s position,” he said. “However, our position is unchanged.”

He suggested the dispute might wind up in court. “I can’t speak in terms of an international court of law, but I believe that’s where it would end if there’s no resolution to it,” Thompson said. He said Canada is “prepared to defend our position using all legal and diplomatic channels.”

Thompson, however, declined to address the issue of ammonia nitrate and other hazardous materials that already are transported through Head Harbor Passage on their way to the Bayside Port across from Calais, Maine.

“I am speaking only in terms of Head Harbour Passage and LNG tankers,” he said. “Those others are side issues. [This dispute] has nothing to do with the passage of other products or components coming up the river.”

Right now two developers are in a race to get the permits they need to build LNG terminals off the coast of Maine. The Oklahoma-based Quoddy Bay LNG has proposed a multimillion-dollar facility at Pleasant Point near Eastport with a tank farm in neighboring Perry. The Washington, D.C.-based Downeast LNG wants to build a terminal and tank farm in Robbinston.

Last month, the New Brunswick government submitted a motion to FERC requesting that the commission terminate its review of the two LNG proposals. FERC declined.

Also last month, Canada announced it intended to take legal action against the proposed LNG terminals. In a letter to FERC, the Canadian ambassador said his government would “not permit LNG tankers to pass through Head Harbour Passage.”

The State Department’s response came after more than a month of strongly worded letters issued by the Maine and Canadian governments.