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The National Energy Board (NEB) approved the application of BC LNG Export Co-operative (BC LNG) for a 20 year licence to export liquefied natural gas to markets primarily in Asia. The export licence authorizes BC LNG to export up to 1.8 million tonnes per year of liquefied natural gas (LNG), equivalent to 250 million cubic feet per day (MMcf/d) of natural gas from Kitimat, British Columbia.
The project will entail the construction and operation of a small-scale barge-based LNG project in Kitimat. The LNG facility would be located on the west bank of the Douglas Channel within the District of Kitimat and the traditional territory of the Haisla Nation. The Haisla Nation, through HN DC Limited Partnership, would have interests in the Douglas Channel Energy Partnership companies involved in the project and BC LNG Export Co-operative.
The facility would include two modules, or trains, each capable of converting up to 125 MMcf/d of natural gas into approximately 900,000 tonnes of LNG per year. Each train can be added as a distinct project. The first train is intended to be completed in late 2013 or early 2014, the second in 2016–18.
Natural gas would be transported to the Douglas Channel LNG terminal on the existing Pacific Northern Gas Pipeline and potentially the Pacific Trail Pipeline. After the natural gas is liquefied, it would be sold to BC LNG Export Co-operative for export to markets primarily in Asia.
The LNG terminal would be regulated by the B.C. Oil and Gas Commission and subject to an Environmental Assessment (EA) at a screening level as required by the Canadian Environmental Assessment Act (CEAA). Authorization under section 35(2) of the Fisheries Act from the Department of Fisheries and Oceans (DFO) will be required before the LNG facility can proceed. DFO is the only Responsible Authority under CEAA and is responsible for preparing the EA screening. The EA began on September 9, 2011, and is ongoing.
As part of the next step in the regulatory process, the LNG proposal will be subject to a Technical Review Process of Marine Terminal Systems and Transhipment Sites (TERMPOL). TERMPOL focuses on the selected routes of ships, their berthing at terminals and the process of cargo handling between vessels or off-loading from ship to shore. The TERMPOL process will be carried out under the leadership and direction of Transport Canada.
Director of Communications
Office of the Minister
Natural Resources Canada
Natural Resources Canada
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