Berkshire Hathaway has pulled out of a proposed large investment in the liquid natural gas pipeline near Quebec’s Saguenay port. Warren Buffetts’s investment company had been planning to invest $4 billion in the project.
The $9.5 billion LNG project is meant to be built about 230 kilometers northeast of Quebec City, according to CBC News. The marine terminal will be used to ship LNG overseas from the Saguenay port.
GNL Quebec’s head of communication Stephanie Fortin previously noted that the company had lost a major potential investor, but did not specify who.
She said that the reason the investor backed out was due to the “current Canadian political context.”
Fortin added that foreign investors are becoming nervous because of the “instability” in the country, caused by the ongoing anti-pipeline blockades.
Fortin said that the project will move forward and no job losses are projected in the immediate future. Fortin noted that the loss will leave a big impact.
The LNG project will involve the building of a pipeline from Northern Ontario to Saguenay. It will be 782 kilometers and used to bring natural gas from the west.
Eleven million tonnes of LNG is expected to be exported per year.
Saguenay’s deputy mayor Michel Potvin told Radio-Canada that losing the investment will be a major setback.
“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.”
Potvin said that he understands Buffett’s decision given that the Coastal GasLink pipeline is facing major hurdles in BC.
The pipeline is meant to be built on Innu territory, and some members of that community have shown opposition to the LNG project in Quebec.
“It takes the acceptance of Indigenous people,” said Potvin. “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.”