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Warren Buffett's company bails on Saguenay LNG project due to 'Canadian political context'

Berkshire Hathaway decided last minute not to invest $4B in $9.5B project

CBC News · Posted: Mar 05, 2020 9:23 AM ET | Last Updated: 44 minutes ago
The company behind the project, GNL Quebec, said this loss doesn't mean the end of the project. (Radio-Canada)

Warren Buffett's investment company Berkshire Hathaway has decided last minute not to invest $4 billion in a liquid natural gas (LNG) plant by the Saguenay port.

The marine terminal to ship LNG to overseas markets is slated to be built roughly 230 kilometres northeast of Quebec City, at a cost of $9.5 billion.


Stéphanie Fortin, head of communications for the company behind the project, GNL Québec, said that they lost the potential investor due to the current "Canadian political context."

She said with "instability" in the last few weeks, such as ongoing rail blockades, foreign investors are getting nervous.

This won't keep the project from progressing, Fortin said, nor will it mean job losses in the immediate future.

She said the loss won't be without impact, though.

The LNG project also involves the construction of a pipeline across a 782-kilometre stretch of the province — from northern Ontario to Saguenay — to transport natural gas from Western Canada.

The goal is to export 11 million tonnes of LNG per year.

The TransCanada pipeline extension, in yellow, would begin near the Ontario border and cross the Abitibi and upper Mauricie regions, ending at the Port of Saguenay. (Joan Dymianiw/CBC)

Michel Potvin, deputy mayor of Saguenay, told Radio-Canada's Tout un matin that this represents a real setback for the project.

"It's concerning when we talk about an investor putting in $4 billion of $9 billion. It's clear that Mr. Buffet has good reasons. We're seeing the rail crisis — that's surely one of the reasons."

He said he understands, given the current discussion around the Coastal GasLink pipeline in B.C. 

In Quebec, the LNG project has also stirred opposition from members of Innu communities. The proposed pipeline would go through their ancestral territory.

"It takes the acceptance of Indigenous people," Potvin said. "In our head, here in Saguenay, we thought we had it. We thought it was accepted by the people. What we're seeing is that actually nothing is certain."

GNL Québec said that transforming the gas to liquid with hydroelectricity would make the project clean — but many environmental groups have been critical of those claims.

In June 2019, more than 150 scientists published an open letter seeking to debunk claims by promoters that the project will benefit the environment.

Concerns have also been raised about the impact on endangered beluga whales in the St. Lawrence Estuary, due to noise pollution and increased tanker traffic in the Saguenay River.

Quebec's environmental review agency, the BAPE, will begin public hearings on the project later this month in the Saguenay.

At the end of the process, the BAPE will produce a report for the environment ministry, which may contain recommendations.

The Quebec government will get the final say on whether the project can go ahead.

With files from Radio-Canada

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Oil down 31% amid Saudi / Russian price war

Dow futures down over 1000 pts 

Japanese stocks drop more than 4%,

Australia shares plummet beyond 5% amid price war.


Trudeaus billion dollar deficits could come back and haunt Canadians if Alberta plunged into recession.

Could be an interesting week.


Edited by Jaydee

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11 hours ago, Jaydee said:

Could be an interesting week.


Perfect storm eh?

But consider the takeaway of the average citizen to all of this…. it’s to horde toilet paper as a defence against apocalyptic events. These same folks vote, invest and ultimately (and collectively) drive the cause/effect elements which effect market forces, demand etc.

Think about that for a second and be afraid….. look up that Costco video of people running amuck in the store to get toilet paper and face masks. How many of those folks do you suppose checked in with their elderly neighbours (you know, those folks actually at risk here) to see if they needed anything? Are people's actions, supply/demand activity, and market forces based on rational, cautious, pragmatic thoughts? 

Now, take a moment and check out the media coverage. Go to CNN and you can read all about the disconnect between Trump and the CDC, essentially it’s all Trump’s fault. Now, go to FOX and you will see that it’s all media hysteria and Demonrat hype for political gain. Is it any wonder people are unhinged?

Don’t stop there…. get on your motorcycle, go see Southern California, see it for yourself. Compare what you see on the ground with the media reports and compare that with the policies 2020 Democrats are proposing.... ask yourself why California hasn’t already implemented the strategies primary contenders (and the Squad) profess will work for the entire nation.

Our cause and effect thinking, at it’s most basic level, has been utterly corrupted by the information age and lack of hands on experience. Simply compare what you know to be true (from experience), with the information and opinion pieces you find online. As with all storms it’s not just one thing, it’s the combination of 2 or more things (usually self inflicted) in concert with a random event.

As in warfare, it’s random events that invariably turn moderately bad plans into full-blown disasters. Cause and effect is observable and quantifiable,  simple reality if you will.... the downside of dealing with Miss Reality is that she simply doesn't care about opinion.

Please allow an off topic example of what I mean; Toronto doesn't have enough police officers to enforce traffic or even respond to accidents, burglaries (etc) yet (as a gang warfare deterrent) City Council wants the authority to ban, collect, catalog and safely store every restricted weapon in the GTA currently owned by licensed, registered folks who are vetted by CPIC ON A DAILY BASIS. An undertaking roughly equivalent in scope to hitting those pesky Paris Accord targets IMO. 


Edited by Wolfhunter
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Posthaste: Canadian oil falls below US$10, as Saudi & Co. unleash a tsunami of barrels to 'teach the market a lesson'

If the world boycotted Saudi oil, a REAL lesson could be taught. They have been gouging the world for far too long😡😡

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