ST. ANDREWS, New Brunswick (AP) – Growing opposition to proposals for liquified natural gas projects in Maine could fuel a fight between Canada and the United States over access to the pristine waters off southern New Brunswick.

Two companies are looking to build LNG facilities on the Maine shores of Passamaquoddy Bay, across from the New Brunswick resort town of St. Andrews.

Opponents in both countries say major LNG operations, with their supertanker traffic, pipelines and storage tanks, would threaten the rich marine life of Passamaquoddy Bay, as well as the region’s tourism and fishing industries.

In picturesque St. Andrews, a favourite seaside retreat for Canada’s rich and privileged, the mood was bleak on Monday as people prepared to protect the picturesque bay.

“The town would initially just be changed, but eventually it would be expunged, eliminated in the form in which it has existed for the last 150 years,” said St. Andrews resident Larry Lack, ruminating on what would happen if the LNG operations are built.

“The tourist economy, the fishing economy, the environment – all of that would go.”

Opponents from both Maine and New Brunswick were to meet in St. Andrews on Monday night to go over the proposals. They are preparing for a major fight; one they expect will ultimately involve the Canadian government, as well as Washington, Maine and New Brunswick.

However, they believe they have an ace in the hole – or at least a lever – to block any LNG project because Canada must give the go-ahead for tankers, loaded with frozen liquified gas, to cross Canadian waters in Passamaquoddy Bay.

“The question is, will Paul Martin stand up to George Bush and say no?” said Janice Harvey of the New Brunswick Conservation Council.

Big tankers

Greg Thompson, the Conservative MP for southwest New Brunswick, has called on the Canadian government to refuse the supertankers access to the tricky Canadian waters leading into the bay.

Although Ottawa says it can’t make a decision until it gets a U.S. request, Thompson said it would save a lot of time and trouble if the Canadian passageway was simply closed to big tankers.

“The Americans will say they have the right to innocent passage, but it’s complicated by the fact that this is extremely dangerous cargo and there is extreme risk to our citizens and to the environment,” Thompson said.

Published scientific reports suggest that if terrorists attacked a tanker, the heat from the ensuing fire would likely destroy the inflammable insulation used to keep the gas cool, and compromise the liquid gas. The reports said this could lead to a massive explosion that would affect people as far as three kilometres away.

Ottawa killed a proposed oil refinery in Maine 30 years ago over concerns the same waters were too dangerous for oil tankers.

The two LNG proposals in Maine are still in the early stages and would have to survive numerous regulatory hurdles to become reality. Both proposals involve the construction of piers reaching into the bay and pipelines to transfer the chilled gas to storage tanks.

Proponents of the facilities insist there is no threat to the environment.

“We’re proposing a very simple LNG import terminal,” said Robert Wyatt of the Downeast firm, based in Washington.

“We have an option on an 80-acre piece of land but we would probably use only about 35 acres. We would keep a lot of trees in the front.”

LNG developers are anxious to cash in on the current fuel crunch and they have their sights set on a port in Maine where the fuel can come in and be routed to the energy-hungry northeastern United States.

Community opposition to LNG facilities has hounded developers along the Eastern seaboard, all the way up to the last possible eastern site on U.S. soil — Maine’s Washington County on Passamaquoddy Bay.

Developers are already offering local communities in Maine millions of dollars in incentives to allow the LNG plants to go ahead.

That’s in marked contrast to the situation in New Brunswick where Irving Oil demanded tax concessions from the cash-starved city of Saint John before it decided to build an LNG terminal in the area.

While there have been protests in Saint John over the tax concessions, it’s thought that the terminal’s location in an industrialised area has lessened the concern about safety and environmental issues.

Other proposals for LNG terminals in Canada have sprung up near Quebec City, Riviere-du-Loup, the Strait of Canso in Nova Scotia, as well as two locations in British Columbia.

AP-ES-08-22-05 1550EDT