Canada formally objects to LNG tankers in Canadian waters

SAINT JOHN, New Brunwick --Canada has told the United States it won't allow liquefied natural gas tankers through tricky Canadian waters to get to liquefied natural gas terminals that are being proposed on the Maine side of Passamaquoddy Bay.

Michael Wilson, Canada's ambassador in Washington, expressed the government's formal opposition in a letter sent Wednesday to the chairman of the U.S. Federal Energy Regulatory Commission.

In his letter, Wilson described Head Harbor Passage as sovereign Canadian waters and an environmentally sensitive area that is challenging to navigate.

He said allowing tankers longer than 900 feet into the passage is an environmental risk that Canada cannot accept.

"We are therefore prepared to use domestic legal means to address our concerns and prevent such passage from occurring," the ambassador said.

The letter comes as FERC is preparing for hearings on two proposed LNG terminals in Maine. Downeast LNG is looking to build a plant in Robbinston, while Quoddy Bay LNG wants to build a terminal on the Passamaquoddy Tribe's reservation at Pleasant Point.

Downeast LNG president Dean Girdis said Wilson's letter won't deter his company from trying to establish an LNG terminal.

"I'm already so far into this it's too late to stop," he said. "We're full steam ahead. This changes nothing."

Girdis questioned Wilson's tactic, accusing Canada of trying to short-circuit the U.S. regulatory process.

New Brunswick MP Greg Thompson wouldn't elaborate Wednesday on what specific steps Canada would take to back up its opposition.

"We're examining every regulation or action we could take to enforce that position," he said.

The federal government commissioned a study of the safety and environmental impacts the LNG proposals could have on Canada, but has not released it.

Thompson insisted Canada's position will not damage Canada-U.S. relations. Wilson's letter states the government's willingness to continue working with the U.S. to meet its energy needs.

John Craig, the mayor of St. Andrews, New Brunswick, across the bay from Robbinston, has been one of the loudest critics of the proposed LNG projects. He said Wilson's letter is a strong statement from Ottawa, and one he had been hoping to hear.

"To hear from Michael Wilson, the ambassador, strongly saying that it won't happen is good news," Craig said. "Hopefully this will send a strong message to all developers that the game is over."

Girdis said he expects government at the state and federal levels in the U.S. will support the right of ships bound for U.S. ports to pass through Head Harbor Passage.

"We know we have rights of passage," he said.

A spokesman for Quoddy Bay LNG declined comment on Wilson's letter.

Head Harbor Passage, between the northern tip of Campobello Island and Deer Island, is no more than 1,800 feet across at its narrowest, and is notorious for high tides, extreme currents and unpredictable fog.

Canadian opponents of the Maine LNG projects have argued that the LNG supertankers would deter tourists, threaten endangered northern right whales and whale-watching, and affect fishermen and aquaculture operations.

Meanwhile, the province of New Brunswick has been granted intervener status at the upcoming FERC hearings on the LNG terminal proposals.

The province is concerned about environmental, safety and security issues, as well as potential impacts on the economy.

As an intervener at the U.S. regulatory hearings, the New Brunswick government would have an opportunity to present its case against the proposals.

The review of the proposals could last up to 18 months.