Repsol may sell Canaport LNG, report says

Spanish oil giant Repsol is looking at selling some of its liquefied natural gas assets in Canada, Peru and Trinidad and Tobago, the Reuters news agency reported on Thursday.

Repsol and Irving Oil Ltd. own Canaport LNG, which is in Saint John.

Canaport LNG told CBC News that it could not respond to the Reuters story and deferred to Repsol for comment.

The news agency cited two unnamed sources that Repsol was looking to offload some of its LNG assets.

Reuters said the Spanish oil company wants to sell its LNG assets to help its financial situation, which was hurt when the Argentine government took over its YPF subsidiary.

Repsol is responsible for providing all of the liquefied natural gas to Saint John's Canaport and holding the capacity at the terminal.

Irving Oil handles the marketing of the regassified liquefied natural gas in Atlantic Canada, while Repsol markets it elsewhere in Canada and in the United States.

Canaport LNG announced in March that it was spending $43 million to upgrade its terminal to make it more efficient and cut down on flaring.

Phil Ribbeck, the president of Repsol North America, visited the facility in January and said low natural gas prices were not jeopardizing Canaport LNG’s future.

Ribbeck said at the time the company was in Saint John for the long run and he expected that low natural gas prices would eventually turn around.