Canada to Ban LNG Ships in Nation’s Waters

Canada plans to prohibit U.S. owners of liquefied natural-gas terminals in Maine from using waters off New Brunswick to bring large LNG tankers into their plants, Canadian Press reported, citing a member of the federal Cabinet.

Greg Thompson, the Canadian province’s senior minister in Prime Minister Stephen Harper’s Cabinet, said LNG is seen by the country as a dangerous cargo and can be banned from transport in its waters, the news service reported.

Three U.S. companies are planning to build terminals on the Maine coast, across from New Brunswick on Passamaquoddy Bay and want to use an internal Canadian waterway to bring in their tankers, CP said. Residents along the coast fear that increased shipping activity will hurt tourism and the fishing industry.

Gordon Grimes, an attorney for Quoddy Bay LLC, one of the LNG companies, said Canada can’t block the ships because the waterway is used for international navigation and there is a right of passage, the news service said. Grimes also said Canada has endorsed the safety of LNG by approving a terminal in New Brunswick near the port of Saint John.

Bloomberg