The Globe and Mail: Decision on B.C. LNG Terminal Looks Set to Go to Federal Cabinet

After a lengthy regulatory process, a final decision on Pacific NorthWest LNG’s proposed liquefied natural gas export terminal on British Columbia’s coast looks set to be referred to the federal cabinet because of its impact on Canada’s greenhouse gas emissions.

A February draft report from the Canadian Environmental Assessment Agency (CEAA) found that the project – led by Malaysia’s state-owned oil-and-gas giant Petronas – is “likely to cause significant adverse environmental effects” to harbour porpoises in the area and to greenhouse gas emissions. If the final report came to a similar conclusion, federal Environment and Climate Change Minister Catherine McKenna would have to refer the matter to cabinet – which has made climate change a central focus of the government.

Late on Tuesday, Bloomberg News reported Ms. McKenna was preparing to make that cabinet referral – a move that comes ahead of a March 22 deadline for the government review, and would cause another delay in a lengthy and contentious approval process for the high-profile $11.4-billion terminal, which is proposed for Lelu Island near Prince Rupert. On Wednesday, however, a spokesperson said the minister “has not yet made her determination of whether the project would likely cause significant adverse environmental effects.” MORE