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October 5, 2007

Canada releases long-lost LNG report

After months of stalling, the Canadian government on Tuesday released a study on the challenges associated with moving liquefied natural gas tankers through Head Harbour Passage.

In February, the Canadian ambassador to the U.S. referenced the study in a letter to the Federal Energy Regulatory Commission in which he said the tankers present an unacceptable risk to coastal New Brunswick. The two companies vying for permission to build LNG terminals in Down East Maine, Quoddy Bay LNG and Downeast LNG, were among those to demand a copy of the study.

The 326-page report from SNES Consultants Ltd. in Ottawa concludes that tankers navigating the passage present "a very high level of risk" and could collide with whales and disrupt lobster fishing, though it says there are ways to mitigate the risk, according to the Bangor Daily News. Both Downeast and Quoddy Bay developers yesterday said the report does not discredit their proposals. "If those who oppose our project hope to use this report as justification for their position, it falls way, way short of the mark," Dean Girdis, president of Downeast LNG, said in a press release.

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