Natural Gas Prices in Quebec and Ontario
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Bureau Joint Review d’audiences Panel publiques sur — Main Report l’environnement Report 241 Rabaska Project – Implementation of an LNG Terminal and Related Infrastructure TRANSLATION Inquiry and Public Hearing Report May 2007 The notion of the environment In a perspective of sustainable development, the commissions of the Bureau d’audiences publiques sur l’environnement review projects submitted to them by applying the notion of the environment retained by higher courts, which encompasses biophysical, social, economic, and cultural aspects. Acknowledgements The Panel thanks the people and organizations who collaborated with it, as well as the personnel of the Bureau d’audiences publiques sur l’environnement and the Canadian Environmental Assessment Agency who provided the necessary support to produce this report. This document is a translation. In the event of a discrepancy, the French version prevails. Publication and Distribution Bureau d’audiences publiques sur l’environnement : Édifice Lomer-Gouin Telephone: 418 643-7447 575, rue Saint-Amable, bureau 2.10 (tool-free): 1 800 463- Québec (Québec) G1R 6A6 Internet : www.bape.gouv.qc.ca Courriel : [email protected] Canadian Environmental Assessment Agency : Place Bell Canada Telephone: 613 957-0700 160, Elgin Street, 22nd floor 613 957-0941 Ottawa, Ontario K1A 0H3 Website: www.ceaa-acee.gc.ca Email: [email protected] Documentation on the Panel’s work is available at the Bureau d’audiences publiques sur l’environnement and at the Canadian Environmental Assessment Agency. Legal Deposit – Bibliothèque et Archives nationales du Québec, 2007 ISBN 978-2-550-50148-0 (print version) (Original edition : ISBN 978-2-550-49788-2) ISBN 978-2-550-50149-7 (PDF) (Original edition: ISBN 978-2-550-49789-9) Quebec City, May 30, 2007 Ms. Line Beauchamp Minister of Sustainable Development, Environment and Parks Marie-Guyart Building, 30th floor 675, René-Lévesque Boulevard East Quebec, QC G1R 5V7 Dear Minister Beauchamp: I am pleased to submit to you the report of the Bureau d’audiences publiques sur l’environnement entitled Rabaska Project – Implementation of an LNG Terminal and Related Infrastructure. The mandate to hold an inquiry and public hearings regarding the project began December 4, 2006 and was chaired by Mr. Qussaï Samak, assisted by Mr. Jean Paré. From the standpoint of energy, the Panel found that the project is in line with the directions set by Quebec’s energy strategy. The Panel concluded that in the areas of economic and industrial activity the project’s added contribution to natural gas supply would have a positive impact on Quebec’s energy security as well as in terms of a relative price advantage. The Panel also noted the project’s favourable regional economic impact in terms of spin-offs and its structuring potential at the regional level. In regard to security, on the basis of its own findings and opinions regarding emergency measures planning, the Panel concluded that the risk assessment for the project is in conformity with established practices in the field, and that the risks associated with the project seem therefore acceptable. In regard to the project’s territorial integration, the Panel concludes that the port and on- shore facilities would alter the landscape quality of the Beaumont shore. In its report, the Panel proposes certain measures to enhance the project’s potential economic advantages. Yours sincerely, William J. Cosgrove President Édifice Lomer-Gouin 575, rue Saint-Amable, bureau 2.10 Québec (Québec) G1R 6A6 Téléphone : 418 643-7447 (sans frais) : 1 800 463-4732 Télécopieur : 418 643-9474 [email protected] www.bape.gouv.qc.ca Quebec, May 28, 2007 Mr. William J. Cosgrove President Bureau d’audiences publiques sur l’environnement Lomer-Gouin Building 575, Saint-Amable Street, Suite 2.10 Quebec, QC G1R 6A6 Dear Mr. Cosgrove: I am pleased to submit to you the report of the Joint Review Panel on the Rabaska Project – Implementation of an LNG Terminal and Related Infrastructure. Having completed its mandate, the Panel is pleased to note that the project is in line with Quebec’s energy strategy. The project also conforms to the government’s position and policies that, over the years, have recognized the importance of strengthening Quebec’s natural gas supply and diversifying sources of supply. The Panel is of the view that the added supply of gas from the project could lead to a relative reduction in the price of natural gas on the Quebec market. On other matters, the Panel concludes that there are two major project-related issues that arise: the risks associated with the project; and the integration of port and on-shore facilities into the area under development. These are two considerations that have a major influence on the project’s social acceptability within the community. The Panel is of the opinion that the risk assessment conforms to current recognized practices in the field. The assessment’s conclusions are also in keeping with the known historical background of procedures for liquefied natural gas security. On the basis of its own findings and opinions on emergency measures planning, the Panel judges the risk associated with the project to be acceptable. …2 Édifice Lomer-Gouin 575, rue Saint-Amable, bureau 2.10 Québec (Québec) G1R 6A6 Téléphone : 418 643-7447 (sans frais) : 1 800 463-4732 Télécopieur : 418 643-9474 [email protected] www.bape.gouv.qc.ca 2 In terms of its integration into the area, the Panel observes that the project, by its very nature, would diverge from the current Ville-Guay district’s land uses, the area earmarked to receive the facilities for the future project. The Panel is of the opinion that the project’s port and on-shore facilities would alter the quality of the Beaumont shore’s landscape. If the project is authorized, the proponent should ensure the best possible integration of its facilities to the landscape in the development areas. Finally, on behalf of the Panel, allow me to acknowledge the extraordinary participation, unprecedented in Quebec, by the people of Lévis, Beaumont, and l’île d’Orléans, as well as the scope of their contribution to its work. Their thoroughness, discipline, and courtesy bear eloquent testimony to their civic engagement and sense of citizenship, and are a tribute to their communities and to the country’s vibrant democratic traditions. Qussaï Samak Panel Chair Quebec, May 30, 2007 The Honourable John Baird Ms. Line Beauchamp Minister of the Environment Minister of Sustainable Development, House of Commons Environment and Parks Ottawa, ON K1A 0A6 Marie-Guyart Building, 30th Floor 675, René-Lévesque Boulevard East Quebec, QC G1R 5V7 Dear Minister Baird: Dear Minister Beauchamp: The Joint Review Panel on the Rabaska Project – Implementation of an LNG Terminal and Related Infrastructure has completed its review in accordance with the mandate it received on December 4, 2006. As chair of the Joint Review Panel, I am pleased to submit its report to you. Please note that the BAPE Commission and the Joint Review Panel agreed to prepare a common report. The Joint Review Panel assessed the project in the context of sustainable development, applying the concept of environment held by the country’s higher courts, which includes biophysical, social, economic and cultural aspects. In addition, the Panel ensured the requirements of the Canadian Environmental Assessment Act and the Quebec Environment Quality Act were satisfied, as stipulated in the Canada-Quebec Agreement on Environmental Assessment Cooperation. I would like to express my gratitude to my colleagues Jean Paré and Jean-Philippe Waaub, as well as to the team that assisted the Panel throughout the process. Finally, I would like to acknowledge the extraordinary contribution of the many members of the public who took part in the hearings. Their contribution was a tribute to the exemplary quality of their civic engagement and sense of citizenship. Yours sincerely, Qussaï Samak Chair, Joint Review Panel Agence canadienne d’évaluation environnementale Bureau d’audiences publiques sur l’environnement Canadian Environmental Assessment Agency Édifice Lomer-Gouin Place Bell Canada, 22e étage 575, rue Saint-Amable, bureau 2.10 160, rue Elgin Québec (Québec) G1R 6A6 Ottawa (Ontario) K1A 0H3 Table of contents Opinions and recommendations............................................................................................ xvii Units of measurement............................................................................................................xxv Introduction ............................................................................................................................ 1 Chapter 1 Opinions of participants ................................................................................. 11 The community’s reception of the project .......................................................................... 11 Justifying the project ..........................................................................................................15 Ensuring energy security and diversifying our supply sources ................................... 15 Economic considerations............................................................................................ 19 A greater place for natural gas ................................................................................... 20 Climate change..........................................................................................................