New report casts doubt on potential revival of Quebec LNG project

MONTREAL — Reviving a liquefied natural gas export project in Quebec’s Saguenay region would be costly and likely unprofitable, a shareholder advocacy group says, as economic threats from the U.S. rekindle interest across the country in new pipelines.

Demand for LNG in Europe dropped by 18 per cent between 2022 and 2024, and Canadian exports would have a hard time competing in Asian markets, says advocacy group Investors for Paris Compliance.

“Investing in infrastructure that will be very expensive and likely won’t be profitable will weaken our economy rather than strengthen it,” Renaud Gignac, an economist and senior adviser for the group, said in an interview.

In a report published Thursday, Gignac notes LNG production is expected to grow by 40 per cent from 2024 to 2028, driven by pr