Mr. Speaker, the Government of Canada is aware of the proposal to construct liquefied natural gas receiving terminals in Passamaquoddy Bay near the New Brunswick-Maine border and the fact that LNG tankers would have to transit Canadian waters through Head Harbour Passage, New Brunswick to gain access to these terminals in the state of Maine.
The government is also aware of the concerns of the local residents related to the perceived associated risks, the impact on the resource based industries of the area, such as fisheries, tourism and aquaculture, and the protection of our natural environment.
A number of Canadian communities in the area have requested that Canada refuse the passage of LNG tankers through Canadian waters. When considering the question of the risk associated with transportation of LNG, the 1976 decision to restrict the use of Head Harbour Passage by oil tankers carrying more than 5,000 cubic metres of oil was made only after studies conducted at that time by the federal government indicated that there were considerable environmental risks.
It should be noted that LNG is not a specified marine pollutant and does not present the same level of risk to the marine environment as crude oil. LNG is largely composed of methane cooled to its liquid state. Unlike oil, which is persistent in nature, if LNG escapes, it immediately starts to vaporize, leaving no residue. The vapour is colourless, odourless and non-toxic. The main risk would be of fire in the case of a spill.
Across Canada there are currently seven proposed LNG terminals. Two have received federal and provincial environmental assessments and approval, the ones at Canso Strait in Nova Scotia and in Saint John, New Brunswick. There are others under consideration in Goldboro, Nova Scotia, in Beaumont, Quebec, in Gros Cacouna, Quebec, in Kitimat, British Columbia, and in Prince Rupert, British Columbia.
Although LNG is a non-polluting, non-persistent hydrocarbon and is not considered a pollutant under the Canada Shipping Act, the government is initiating a study to examine the full range of impacts that the construction of an LNG terminal would have on Passamaquoddy Bay, and especially its effects on the Canadian side. This study would include environmental, transportation and socio-economic considerations. When the results of this analysis are completed, the government will make a decision based on the findings and other relevant factors.
On the question of whether Canada could prohibit LNG tankers from transiting Head Harbour Passage, section 562.1(1)(e) of the Canada Shipping Act does allow for the prohibition of navigation under very specific purposes, such as promoting safe navigation, protection of the marine environment and protecting persons, ships, shore areas, et cetera. However, justification to support a prohibition under this section is not readily apparent at present, given that cargo ships currently transit the area, LNG is not a pollutant, LNG tankers will be permitted in other regions of Canada, and risks can be reduced through a number of controls.
Nevertheless, our government is planning to undertake a comprehensive risk assessment study to best be able to respond to the current LNG proposals.
I can assure the hon. member that Transport Canada is closely monitoring the situation. Transport Canada will thoroughly review any LNG terminal applications and work in consultation with other federal departments, the provinces, the United States authorities, the project proponents and other stakeholders.
I can assure the member--
