Spanish company drops LNG terminal in New Brunswick citing high costs to ship gas

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New Brunswick Premier Blaine Higgs said Friday he was disappointed.

New Brunswick Premier Blaine Higgs said Friday he was disappointed by Repsol’s decision to drop the project but not completely surprised because he was aware of issues surrounding costs.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

German Chancellor Olaf Scholz said last year his country was open to accepting more gas from Canada but cautioned that the economics might not make sense. Higgs said Repsol made it clear that the economics of transporting the gas by pipeline from Western Canada before shipping it to Europe “were just completely out of the question.”

“But the gas supply component, which Repsol made very clear in their statement, did not meet the criteria, and basically made the economics not work.” The tolls to ship the gas by pipeline were “just too high” and made the project unviable, he added. Higgs said the “actual numbers” were not shared with him.

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