Hello, iPolitics readers.

Welcome to Economic Insights, a twice-weekly newsletter focusing on major projects and the Canadian economy at large.

Stories we are following:

• Prime Minister MARK CARNEY was in CONTRECOEUR on Thursday to tout a massive $1.16-billion loan from the CANADA INFRASTRUCTURE BANK (CIB) for the PORT OF MONTREAL expansion. 
• Academics are reporting on LNG CANADA’s facility in KITIMAT, saying they obtained FOI documents showing gas flaring levels reaching up to 45 times the permitted limit.

Still no word from private investors for Contrecoeur 

The Liberals are framing progress at the Contrecoeur terminal expansion project as a win for the MARK CARNEY government and the MAJOR PROJECTS OFFICE.

• Symbolic: Cabinet members attended a “ground breaking” ceremony on a construction site Thursday, even if work began last fall and the terminal opening is years away.
• Taking credit: CARNEY says his government committed $1.16 billion to the project through a CIB loan. He says the MPO helped “streamline approvals, develop an effective financing model, and help secure permits faster.”
• Fact-check: The CIB operates at arm’s length of the government and is mandated to make investment decisions independently. It was tasked to work with the MPO in the last budget.
• Complex financial package: The challenge for Contrecoeur lies on the financing side, as MPO CEO DAWN FARRELL previously told a House committee.
• Big loan: The $1.16B loan from CIB will help the $2.3B project. The MONTREAL PORT AUTHORITY recently told iPolitics a deal could be reached with private terminal operator DP WORLD by years’ end.
• Noted: Montreal Port CEO JULIE GASCON abruptly left her role last week.

Flaring out of control

CP is reporting on new documents suggesting that LNG CANADA’s startup phase has been significantly messier—and louder—than environmental assessments accounted for.

• The exceedance: Data analyzed by UNIVERSITY OF VICTORIA researchers show that between October and January, flaring at the KITIMAT plant far surpassed permitted volumes. “Warm/wet” flares exceeded limits by 45 times on average, while “cold/dry” flares were 40 times over the allowed threshold.
• The “integrity” issue: A spokesperson for the consortium admitted the facility is dealing with an equipment issue. Internal documents suggest the fix could take up to three years, as per reporting by the NARWHAL.
• Regulatory heat: The BC ENERGY REGULATOR is facing criticism for allowing the exceedances to continue without fines. Health-care groups, including CAPE, describe it as a growing community health concern.
  

By the numbers

90 percent: The projected growth in Ontario electricity demand by 2050, according to the latest electricity system operator update. 

$98.43: Global price of crude oil per gallon at the time of writing this newsletter.  

$18.1 billion: The total amount of capital the CIB has now committed across 108 projects nationwide.

Major projects watch

— ONTARIO’s electricity operator announced today that a capacity stream window, set to wrap in June, will target resources that can contribute during peak periods, such as storage and gas. Selected projects will be awarded 20-year contracts. The IESO also announced 14 selected projects, 12 of which are solar, as part of a long term plan to acquire 1,600 MW of new capacity.

— Iqaluit, Hay River and Whitehorse all received federal support for key infrastructure from the Build Communities Strong Fund, which promises $51 billion for infrastructure over the next 10 years.

—  The head of RBC says the bank plans to launch a growth fund to invest up to $1 billion in Canadian companies in the coming years.

Headlines