By CHRISTOPHER WILLIAMS
October 5, 2009
Energy transportation and logistics are keeping New Brunswick humming in tough times. Charting the course for future energy projects was the appropriate focus of the New England Governors and Eastern Canadian Premiers Conference held in Saint John in September.
The conference gathered leaders from Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont as well as Quebec, Newfoundland and Labrador and the three Maritime provinces.
New Brunswick’s geographic position made it a good host as the province exports power transmission, particularly from Saint John, where Canada’s largest oil refinery and first marine LNG terminal provides energy to its New England neighbours.
Other provinces want to take advantage of U.S. demand, too. But one problem is improving a regional transmission grid to handle more electricity from wind farms and traditional power plants.
“We all share in the same objective to be able to sell more clean and renewable energy to the United States,” said Quebec Premier Jean Charest, who wants to work with other provinces. “If we can help make that happen, we’ll all be winners.”
A few weeks ago, Newfoundland and Labrador Premier Danny Williams accused Hydro-Quebec of economic protectionism for blocking the Lower Churchill project. Mr. Williams said he wants to see electricity flowing smoothly across the borders.
“It makes sense that we work together in supplying each other in terms of energy,” Mr. Charest agreed, emphasizing regional self-sufficiency as an objective and promoting Quebec’s 1,200-megawatt hydroelectric power connection into New Hampshire.
Clean energy figured prominently
David Coon of the New Brunswick Conservation Council urged the governments to form an Atlantic renewable energy corporation to strategize on the clean energy potential of the region. Rhode Island Governor Donald Carcieri concurred. “We need to put everything we possibly can into getting this thing pulled together,” he insisted.
Conference co-chairs, New Brunswick Premier Shawn Graham and Maine Governor John Baldacci, announced plans last March to explore development of the Northeast Energy Corridor. At the same time, Saint John-based Irving Oil announced a feasibility study on the corridor, which would be capable of 1,200 megawatts of electrical transmission. Last summer, the corridor concept lost some steam when Maine skeptics suggested Canada would reap all the benefits even though there would be mutual gains.
Maine LNG terminals: touchy topic
Equally sensitive is the Canada-U.S. debate over tanker access to the narrow and turbulent Head Harbour Passage located at the border. American LNG developers have applied to build marine receiving terminals there. The Canadian federal government said it will forbid LNG tankers from entering the Canadian side of the waterway, while Maine developers say New Brunswick unfairly supports the LNG terminal in Saint John while opposing Maine’s LNG projects.
In Saint John, Gov. Baldacci said both Canadian and American officials should respect the ultimate decision of the U.S. Federal Energy Regulatory Commission. “It just seems like this particular issue is transcending the process,” he said, calling for rules for cross-border disputes, whether they involve LNG, lumber or potatoes. Mr. Graham appeared to agree with Gov. Baldacci. “We’ve always stated that the process must be followed and respected,” he said.
Mr. Graham also implored Atomic Energy of Canada Ltd. to devote more attention to the $1.4-billion refurbishment of the province’s Point Lepreau power plant, the only nuclear reactor in Atlantic Canada. The refurbishment project relies on all modes of transportation and is designed to extend the life of the reactor by another 25 years. Mr. Graham said the federal Crown corporation is responsible for rebuilding the reactor and must adequately focus on the New Brunswick reactor.
Conference presenters from New Brunswick also included Elizabeth Weir of Efficiency New Brunswick, who spoke about the province’s unique approach in offering all-fuels energy efficiency programs, and Kenneth Irving of Fort Reliance, the parent company of Irving Oil. Governor James Douglas of Vermont asked Mr. Irving where he felt the region’s economy was headed. Mr. Irving, who shelved his company’s plans to build a second oil refinery last July, said that the business remains difficult to pin it down.
“When you look at our region and the incredible resources that we have, it’s an incredible area and, if we look at it within a global context, we have all the right resources to be very flexible for who knows what future,” he said. Mr. Irving and his father, Arthur Irving, reinforced their strong personal feelings for the region to lead in the North American marketplace and the world. Irving Oil, which annually ships more than 20 million tonnes of petroleum cargo through the Port of Saint John, employs 7,000 people, operates from 13 marine terminals and runs a fleet of tractor-trailers.
The conference kicked off the night before with the sun setting on three glamorous cruise ships in the harbour. Canadian and U.S. delegates were treated to a special event hosted by Ducks Unlimited at the new Marco Polo cruise ship centre and headquarters of the Saint John Port Authority.