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FREDERICTON — The Spanish business at the rear of a proposal to export liquefied pure fuel to Europe via a terminal in Saint John, N.B., has introduced it will not go ahead with the project simply because the costs are too significant.
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New Brunswick Leading Blaine Higgs said Friday he was disappointed by Repsol’s decision to drop the project but not wholly shocked due to the fact he was knowledgeable of concerns surrounding prices.
“I was anticipating a little something that would be possibly unattractive economically, but of course upset in the venture,” he advised reporters. “At this issue (they’re) unquestionably not ready to proceed for the reason that of large expenses of fuel supply.”
The proprietor of the Saint John plant experienced meetings with the federal government in June on turning it into an export facility to assist Europe wean itself off Russian oil and fuel soon after the invasion of Ukraine. The plant now imports liquefied natural fuel from the United States, but ideas ended up to retrofit it so it could export fuel in about 3 many years.
German Chancellor Olaf Scholz reported last 12 months his country was open up to accepting a lot more fuel from Canada but cautioned that the economics may well not make sense.
“There are a variety of probable tasks, which includes just one in Saint John, and some other folks that are on the guides for which there has hardly ever been a solid organization case since of the length from the gasoline fields,” Scholz explained at the time.
Higgs mentioned Repsol made it distinct that the economics of transporting the gas by pipeline from Western Canada right before shipping and delivery it to Europe “were just completely out of the question.”
“The elements on the construction, the elements on the marketability and the purchaser achieved the standards,” he mentioned.
“But the gasoline source part, which Repsol made pretty distinct in their statement, did not meet the conditions, and in essence made the economics not function.” The tolls to ship the fuel by pipeline were “just much too high” and created the job unviable, he extra. Higgs mentioned the “actual numbers” have been not shared with him.
Michael Blackier, spokesman for Repsol’s Saint John plant, explained the determination to scrap the liquefaction job was produced following a feasibility research that identified the in general fees to ship the gas to their terminal ended up way too superior.
“We will not be delivering any documentation,” he claimed in an e-mail when asked for a copy of the feasibility research.