April 19, 2025 — Ruby River Capital LLC, a U.S.-based company, is vigorously defending its $1 billion claim against the Canadian government regarding the halted liquefied natural gas (LNG) facility project in Québec. The company has urged the International Centre for Settlement of Investment Disputes (ICSID) tribunal to reject Canada’s jurisdictional objections, which Ruby River calls without merit.
In a detailed brief submitted on April 18, Ruby River emphasized that Canada’s contention—that the dispute does not arise directly from an investment under the ICSID Convention—is unfounded. Having invested over $120 million in the now-stalled Énergie Saguenay LNG facility and export terminal in Saguenay, Québec, Ruby River maintains Canada is liable for breaches of the North American Free Trade Agreement (NAFTA) and seeks $1 billion in damages.
Ruby River also refuted Canada’s argument that the ICSID tribunal lacks jurisdiction over environmental assessments related to the project and dismissed claims tied to a press leak about an investor’s withdrawal.
The company distinguished its case from a recent $15 billion claim by TC Energy against the U.S. government concerning the Keystone XL pipeline cancellation, which was dismissed. Ruby River asserted that the Keystone decision holds limited relevance given different facts and argued that Canada’s wrongful actions in this case began as early as 2015, including events after NAFTA’s termination.
Canada previously sought to pause Ruby River’s claim pending the outcome of the Keystone case, but the ICSID tribunal denied the request in December 2023, a ruling made public in May 2024.
Ruby River, owned by Freestone International LLC and Breyer Capital LLC, contends that Canada violated NAFTA’s national treatment and most-favored-nation standards by denying the LNG project’s approval. The company asserts all conditions under NAFTA, the United States-Mexico-Canada Agreement (USMCA), and the ICSID Convention are met, supporting its right to proceed.
The arbitration case, Ruby River Capital LLC v. Canada (Case No. ARB/23/5), is currently before the ICSID tribunal, chaired by Carole Malinvaud, with Barton Legum representing Ruby River and Prof. Zachary Douglas KC representing Canada.
For further information, please contact Ruby River’s legal representatives at Lalive SA or Canada’s Trade Law Bureau.
