Critics, supporters of liquefied natural gas plan await decision and impact on economy, environment

As a project that would make Newfoundland and Labrador an exporter of liquefied natural gas awaits a green light, critics are decrying the potential impact on the environmentwhile supporters say it will be an economic boon.

The LNG Newfoundland and Labradorproject would transport natural gas from the Grand Banks off Newfoundland to Placentia Bay via subsea pipeline and turn it into liquefied natural gas.

University of Waterloo political science associate professor Angela Carter called the project a "climate red flag."

"This is about increasing natural gas production in our offshore, and the price tag of that in terms of carbon is very high."

The provincial government has committed tocutting greenhouse gas emissions by 30 per cent of 2005 levelsby 2030.

This project, however, said Carter, will increase emissions rather than lower them.

But LNG Newfoundland and Labrador CEOLeo Power says the project can reduce emissions on a larger scale.

"Natural gas has half the carbon intensity of coal. If we do nothing else but help to shut down coal plants around the world by using natural gas, we will have a huge positive impact in lowering global emissions," said Power.

Carter said the notion that liquefied natural gas is a bridge fuel isn't based in science. Factoring in the processing and exporting means emissions fromliquefied natural gas aren't much lower than the consumption of coal in the country where it was extracted, she said.

"Fossil fuel companies have put in a lot of effort to try to repackage natural gas so that natural gas becomes one of those fossil fuels that we can continue expanding," said Carter.

"It's oil and gas and coal, all of our fossil fuels, that are responsible for emissions that are causing the climate crisis."

Supporters tout the economic benefits of the project.

Arnold's Cove Mayor Basil Daley saysthe project would mean jobs, tax revenue and an influx of people to the town.

Grassy Point, where the floating liquefied natural gas facility for the proposed project would be built, lies within Arnold's Cove's boundaries.

"We are the economic hub of a lot of the areas here when construction work is on the go," said Daley. "But like everywhere, we're looking to grow our town and get new, younger people to live here."

In recent years, the nearby Come By Chance refinery and Bull Arm site as well as the transshipment facility and the Icewater Seafoods fish plant in the town have provided more than 600 direct jobs, as well as indirect jobs through the establishment of a doctor's office, a pharmacy, a grocery store and a hardware store in the town.

According to LNG Newfoundland and Labrador, the project will provide up to 1,500 jobs during the peak construction phase and 400 permanent direct jobs once it's operating.

Miawpukek First Nation will also benefit from these jobs, as it has a small equity stake in the project, notes Chief Mi'sel Joe part of the First Nation's business model.

"It creates employment for our people, whether on reserve or off reserve. And we've been fairly successful with that," said Joe.

Another important aspect of the deal for Miawpukek, which depends on federal funding, is achieving self-sufficiency, said Joe.

"This project is looking at the seven generations to come."

The president of the Fish, Food & Allied Workers-Unifor unionalso has jobs in mind but in the fishing industry.

Keith Sullivan said he'sconcerned about potential oil spills in the fishing grounds on the Grand Banks.

"This is a sustainable resource we have in the fishery," said Sullivan. "To go and put in extremely risky infrastructurelike pipelines in this environment, or put these oil and gas installations on the best fishing grounds in the world, I think that's a stretch too far."

Power says risk-mitigating measures are in place, such as an option to lower the pressure within the pipeline or to stop the flow of gas.

He called liquefied natural gas a "tremendous resource" that needs to be developed to produce wealth and employment for Newfoundland and Labrador.

The market for liquefied natural gas, he said,will double within the next 20 to 30 years, since a mix of energy sources, including fossil fuels, will be needed for the coming decades while countries transition to renewableenergy.

Power also says the facility would be close to prime markets such as Germany, which recently announced the construction of liquefied natural gas terminals in an effort to decrease its dependence on Russian gas.

But Carter questions whether there will still be demand for liquefied natural gas in Europe by 2030, when the project is expected to begin production.

"Climate policy is now turning its focus very clearly on fossil fuel supply and demanding that countries start that wind down," said Carter.

"This is the future of how we're going to be thinking about dealing with the climate crisis in the future. And Newfoundland and Labrador is going in the wrong direction."

Anenvironmental assessment committeeappointed Feb. 4 has 120 days including 40 days for public comment to draft guidelines for an environmental impact statement.

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