Canadian regulator gives approval for LNG port on Hudson Bay

The Canada Energy Regulator has granted authorization for the NeeStaNan organization to develop a port for LNG exports on Hudson Bay, Canadian state media CBC reported on July 11.

The order authorizes the NeeStaNan organization to move ahead with a feasibility study for a saltwater port on the mouth of the Nelson River that would allow Canadian gas producers to export LNG year-round and ship quickly to ports in western Europe.

NeeStaNan has spent the past two years studying the viability of a utility corridor which would move Canadian natural resources such as gas, bitumen, ores, grains, hydrogen and potash from western Canada to Port Nelson and enable products to be shipped year-round to partners in Europe and Latin America.

Under the plan, natural gas will be transported via a 1,000-km spur line from TC Energy’s Canadian Mainline, which would take utilise Manitoba Hydro’s existing right of way. Only a new 150 km rail spur line would need to be built, which would connect Gillam to Hudson Bay for the proposed tidewater port.

The project has skyrocketed in importance following Donald Trump’s return to the US Presidency. With Trump threatening tariffs on Canadian products, politicians in both Canada and Europe have been keen to discuss strengthening trade relations.

In April a delegate from EU member states visited Manitoba to hold talks with Premier Wab Kinew, and the proposed project has been gaining momentum since then.

Officials from a handful of European countries, including Germany, Greece, and Latvia have already gone on record as stating they would be very interested in purchasing LNG from Canada.

Port Nelson has had the inside track as the site location given that the Port of Churchill is too small to handle a large number of tankers and the potential impact expanding operations in Churchill could have on ecotourism in the area which is a popular tourist stop for beluga whale watching and polar bear viewing.