Quebec

Giant natural gas discovery with near-zero emissions Clean Gas for local demand
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The Lowlands are situated in Quebec, south of the St. Lawrence River between Montreal and Quebec City. Building a circular economy on a significant discovery on Quebec Utica could result in the second lowest supply gas cost in North America.

While Questerre pursues a business and political solution for the development of its natural gas discovery, it is protecting its legal rights following the enactment of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities in Quebec (“Bill 21”).

The Company is assessing available provincial and federal funding programs for its proposed carbon storage pilot. This follows the application for the pilot submitted to the Quebec Ministry of Economy, Innovation and Energy (the “Ministry”) under Bill 21 in the first quarter of this year. The project includes a comprehensive program to test the carbon storage potential including injection and monitoring wells, compression facilities and a pipeline to an adjacent industrial park.

In June, the Ministry tabled in the Quebec National Assembly Bill 69, An Act to ensure the responsible governance of energy resources and to amend various legislative provisions (“Bill 69”). The centerpiece of the proposed legislation is an integrated energy resource management plan to promote energy development in Quebec. Among other things, could renew interest in natural gas as a transition fuel in Quebec. During the public consultation process this quarter, we advocated for local natural gas production as an essential part of the energy mix through the Quebec Energy Association. With the technical review by the Quebec Ministry of Economy, Innovation and Energy complete, our application for a carbon storage pilot is advancing through the approval process. Carbon capture could contribute to meeting Quebec’s climate goals with the on-going consumption of natural gas.

Following the permission granted to the Attorney General of Quebec to appeal the Quebec Superior Court (Civil Division) ruling from earlier this year suspending key provisions of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities in Quebec (“Bill 21”) pending a hearing on the merits of the case, Questerre and other license holders filed a joint motion for review and annulment of the judgement granting the application for the leave to appeal (the “Motion”). In October, the Quebec Court of Appeal heard the Motion and the appeal by the Attorney General. The Company is awaiting a decision from the Court of Appeal. The Company continues to follow the legal process for the main hearing on the merits of its case. The questioning of key Government representatives will take place next year to be followed by the establishment of a trial date for the hearing.

Additional reading please see: CIRAIG report on environmental profile of the Quebec Clean Gas Initiative and comparison with other supply chains. CIRAIG-Clean gas initiative LCA wo appendices