Quebec gives environmental OK for $300M pipeline

Ultramar Ltd. said Wednesday it has received a key environmental stamp of approval from the Quebec government for the $300-million Pipeline Saint-Laurent project.

Ultramar Ltd., a subsidiary of Valero Energy Corp., said the province has adopted a decree authorizing the project under the terms of the Environment Quality Act for 28 of the 32 municipalities located in the pipeline corridor.

"This is a crucial step towards the construction of a pipeline between our Levis and Montreal East facilities," project manager Louis Bergeron said in a statement.

Montreal-based Ultramar said the decision means the company has met the environmental requirements for the project andshows the pipeline is a valid project.

The company said the project will reduce the number of trains running in the Lvis-Montreal corridor, which will help the environment and increase security.

Ultramar still needs authorization from Environment Minister Line Beauchamp, along with agriculture and construction permits.

However, the company said theapproval decision Wednesday is "a clear signal which brings us close to the construction phase of the project."

Construction is expected to begin next year.

"This project has an impact well beyond our company, as it will be a major factor in ensuring Quebec's energy security by allowing Ultramar to better secure its product deliveries to the Montreal region, while providing uninterrupted supplies during the winter,"Bergeron said.

Ultramar owns and operates a refinery near Quebec City, which produces about 265,000 barrels of oil a day.

The company also markets gasoline and diesel fuel to industrial and wholesale customers and has a network of about 830 service stations and convenience stores. It sells home heating oil to about 140,000 customers.