Russian deal at risk

Russia’s military actions in Georgia could jeopardize commercial natural gas deals with Russia, Prime Minister Stephen Harper hinted yesterday.

Gazprom announced in May it was joining Enbridge, GazMetro and Gaz de France in developing an $840-million liquefied natural gas project in Quebec that’s scheduled to go ahead in 2014.

Negotiations are ongoing and the deal, under which Gazprom would supply all of the import terminal’s capacity, is expected to be signed later this year.

But Tristone Capital analyst Christopher Theal said should the deal with Gazprom fail, alternative suppliers for the deal are scant.

“If Enbridge and partners are in a stance where they have to go and source supply elsewhere, it’s going to be very difficult to do so,” he said.

Calgary Sun