Spanish energy firm Repsol has scrapped its plans to export LNG from its existing Saint John LNG import terminal in Canada.
“Following a study carried out by the company, it was determined to not continue with the Saint John liquefaction project as the tolls associated to it made it uneconomical,” a spokesperson for Repsol told LNG Prime via email on Friday.
The spokesperson did not provide any additional information.
In February, Repsol secured a license extension from the Canada Energy Regulator (CER) to export LNG from its existing import terminal in Canada.
Repsol’s unit Saint John LNG estimated that it would take at least three years to build the interconnecting pipelines that would deliver natural gas to the LNG export facilities.
Saint John LNG was proposing an expansion to its LNG facility by adding liquefaction capability of 2 Mtpa, it previously said.
Repsol is the sole owner of Saint John LNG, previously known as Canaport LNG, after it purchased Irving Oil’s stake in the plant in 2021.
The firm had previously planned to convert the facility to export LNG but the plan did not proceed due to a lack of interest from offtakers and investors.
However, things have changed last year as European countries look to fast-track LNG imports in order to boost energy security and replace Russian pipeline gas.
Repsol’s CEO Josu Jon Imaz confirmed during the company’s second-quarter earnings call last year saying that the firm had met with authorities, and that there was an interest in some European countries such as Germany about potential LNG exports from the terminal.