Petro-Canada and TransCanada Corp are planning a C$660 million ($504 million) LNG plant in Quebec to help bolster declining North American gas supply, the companies said.

TransCanada, the country’s biggest pipeline firm, and Petro-Canada, one of its top oil producers and refiners, signed a memorandum of understanding to build the plant near Riviere-du-Loup on the St Lawrence River, northeast of Quebec City, which would process 500 million cubic feet a day of imported LNG, they said.
The supply would be connected to TransCanada’s pipeline network and shipped to markets in Quebec, Ontario and the US Northeast, Petro-Canada spokeswoman Mona Rossiter said.
That will require a 250 km connector pipeline from the plant site on Gros Cacouna Island, Quebec, to be built by TransCanada, Rossiter said.
Under the memorandum, Petro-Canada will be responsible for securing the LNG supply for the plant.