Canada, U.S. on course for LNG collision

Gas terminal plans: Conflict over tankers’ passage coming to a head

WASHINGTON – The Conservative government is refusing to allow huge liquefied natural-gas tankers to go through Canadian waters off New Brunswick to two proposed gas terminals in Maine because of worries of catastrophic accidents in the treacherously narrow passage.

Michael Wilson, the Canadian ambassador to the United States, said in a letter to U.S. energy regulators this week that Ottawa will refuse to allow the large tankers to go through the Canadian- controlled Head Harbour Passage to get to Maine ports.


This latest cross-border dispute comes just days ahead of a planned visit next week to Ottawa by Condoleezza Rice, the U.S. Secretary of State. The visit has not yet been officially announced but Ms. Rice is widely expected to complain about Ottawa’s refusal to allow the tankers if either of the projects is approved.

Head Harbour Passage, at the bottom of the Bay of Fundy, is controlled by Canada, but foreign cargo ships have been allowed for decades to go through the narrow passage into Maine ports.

Financial Post