All natural gas imported by Rabaska is designed to meet the growing demand on the Quebec and Ontario markets for this clean replacement for heating oil, fuel oil, and coal. The Canadian West is Quebec's sole source of natural gas. In addition, this region supplies Quebec and Eastern Ontario through a single natural gas carrier.

This virtual monopoly has made Quebec a captive customer of this single supplier and gives it no leeway to negotiate the price of the natural gas it uses. Furthermore, natural gas has never been more popular in North America. Availability and demand are tightening, which raises prices and thereby discourages some businesses from using this clean fuel. They therefore turn to other fossil fuels, which collectively distances us from our Kyoto objectives by raising atmospheric emissions.

Thus, Rabaska's LNG diversifies the sources of natural gas for Quebec and Eastern Ontario customers, making this resource more competitive while keeping it at a fair and reasonable price.

Numerous projects were studied to diversify supply sources and reduce dependency on Canada's sole natural gas supplier. The TNGT-TMPP (1996-1997) and Cartier (1999-2000) projects were aimed at linking the Trans Quebec and Maritimes (TQM) pipeline to the Sable Island basin off the Nova Scotia coast. These projects had to be dropped for various reasons, such as insufficient gas supplies in the offshore basin and producers' preference to serve the U.S. market.

Importing LNG with tankers is a safe and cost-effective way to provide access to global reserves.

With over fifty LNG port projects, LNG is making a strong comeback in the U.S. The return to service of three terminals and the increase in capacity of some of them-notably those in Lake Charles, Louisiana, Elba Island, Georgia, and Cove Point, Maryland-bears this out. Furthermore, U.S. authorities approved three terminal projects in 2004.

In Canada, the Irving project in New Brunswick and the Anadarko project in Nova Scotia have already been given the green light by the competent authorities, and five other terminal projects are under study. There is thus a consensus among main players in the Canadian and U.S. gas industry on the need for LNG.

The bulk of gas from the Rabaska project will be purchased by Gaz Métro to serve the growing needs of its Quebec customers and by Enbridge to serve its Ontario customers. The remaining gas will be purchased directly by industrial and commercial customers in Quebec and Ontario.

Expropriation is an exceptional measure we wish to avoid. We prefer by far to negotiate by mutual agreement the purchase of properties needed for our project. We have already started to contact landowners and have signed purchase agreements for 90% of the properties required.

LNG is the acronym for liquid natural gas. LNG is natural gas that has been cooled to between -160°C and -259°F until it becomes a liquid. Liquefaction reduces gas volume by a factor of 600, which allows it to be shipped in tankers to regions far from the production site and stored with a view to regasification and incorporation into traditional pipelines. LNG is shipped and stored at slightly more than atmospheric pressure. It is colorless, odorless, and non-toxic.

No.
LNG is a proven technology used by many countries across the globe. In France, this technology was studied in 1958 and put into service in 1965. In Japan, LNG has been the only gas supply source for over 40 years. Gaz Métro has operated a liquefaction unit and two LNG reservoirs in east-end Montreal since 1969.

No.
Conventional odorants freeze at LNG temperatures and do not work well enough at low temperatures to scent vapors from LNG spills. Conventional odorants are aimed at helping people detect natural gas leaks at points in the distribution network. State-of-the-art multiple detection systems will be used on tankers and land facilities to ensure potential leaks are detected.

Yes.
LNG vapors are odorless and colorless, but when LNG is spilled, its low temperature condenses water vapor in the air, creating a white cloud that is immediately visible.

LNG facilities and tankers use various detection devices to warn personnel of a leak or spill. These devices can detect the presence of gas, flames, smoke, and high or low temperatures, among other things.

In the event of a spill, LNG evaporates and forms a visible cloud that dissipates quickly and requires no pollution control measures, while gasoline and fuel oil form a flammable pool that remains much longer and requires cleanup action.

Rabaska safety measures include various detectors, display screens, and monitoring devices to prevent and detect leaks, spills, or fires.

Facility safety is based on using the right equipment to manage cryogenic temperatures and high LNG pressures.

Staff training also plays a key role. Operators must master safety and emergency procedures, which are documented and updated, and subject to verification by regulatory bodies.

As well, only authorized personnel may enter the facility. Safety measures include restricting site access to authorized personnel at all times. The perimeter is fenced, motion detectors are installed on the fences, and lighting, closed-circuit television, and surveillance rounds are used to monitor the site.

Offloading docks are equipped with emergency stop, camera monitoring, and gas and fire detection systems. Tanker personnel are not authorized to enter the terminal. Only those who have been authorized and duly trained in emergency preparedness may enter.

The offloading dock has the same hazard prevention and detection systems as the rest of the import terminal. The systems for offloading LNG feature control and monitoring devices designed to detect abnormal readings and allow corrective action to be taken to prevent any danger.

A closed-circuit TV system is used to monitor the offloading zone and flammable gas and UV/IR fire detectors are used as a backup. Emergency stop buttons are located in the dock control room and on board tankers. Once activated, these buttons bring the tanker and import terminal to a dead stop. This emergency procedure normally stops all pumps and closes all pipes so that LNG remains on the tanker or in the reservoir.

In certain terminals, offloading pipes have quick-disconnect couplings that quickly close the offloading system if the tanker drifts from the dock.

The risks are closely tied to the release or leak of LNG vapors. LNG is non-toxic and non-carcinogenic, and is not chemically reactive. It is only flammable in an air-to-gas mixture range of 5% to 15%. If a spill occurs, the vapors very quickly become lighter than air, rise, and dissipate. The flames of an uncontained vapor cloud spread slowly and the cloud will not explode. LNG vaporizes extremely quickly when ignited, strictly limited by the flammability of natural gas in air. Ignited gas clouds burn back into LNG pools at the source of the spill. The fire is therefore limited to the vessel and does not spread like other hydrocarbon spills. LNG flames are radiant, and radiation intensity depends on the size of the fire (flame surface) and the distance of the flame source.

By way of comparison, gasoline and fuel oil are more flammable and are toxic in their liquid state. Spills of these hydrocarbons seriously affect the environment. Consequently, LNG is less dangerous than other fuels.

Below is a table comparing the effects of similar fuels.

Danger	LNG	Liquid Propane Gas	Gasoline	Fuel oil
Toxic	No	No	Yes	Yes
Carcinogenic	No	No	Yes	Yes
Flammable	Yes	Yes	Yes	Yes
Asphyxiant	Yes, in closed spaces	Yes, as with LNG, but the greater density encourages accumulation	No	No
Other health risks	Low temperature	No	Eye irritant, narcosis, nausea, other	Same as gas
Flammability range in air in %	5% to 15%	2.1% to 9.5%	1.3% to 6%	N/A
Permanently under pressure	Ambient, except for certain small containers	Pressurized	Ambient	Ambient
Spill behavior	Evaporates and forms a visible cloud that quickly dissipates	Evaporates and forms an explosive vapor cloud	Forms a flammable pool requiring pollution control measures	Same as gasoline

Rabaska will serve 60 to 70 tankers annually, or a vessel every six days. Tankers will dock for around 24 hours, including 16 hours for offloading.

In the last 40 years, accidents involving tankers have occurred worldwide. In most cases, the vessels suffered minor damage. The two incidents that caused the most damage were due to grounding, but none led to cargo spills. Since tankers have been in service, there has been no loss of cargo in 40,000 return voyages, or over 160 million kilometers.

Regulatory Process

Various ministries, departments, and assessment and regulatory bodies of the Quebec and Canadian governments (Régie de l'énergie, National Energy Board, Canadian Environmental Assessment Agency, Fisheries and Oceans Canada, and the Canadian Coast Guard) will participate in the project. In addition, regional county municipalities (RCM) and the municipalities involved will have a direct say in areas under their respective jurisdictions, notably land use and urban planning by-laws.