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British Colombia gives facility permit for LNG Canada project

EBR Staff Writer Published 06 January 2016

A Shell-led joint venture has secured facility permit from the British Columbia Oil and Gas Commission (OGC), a key permit to build a liquefied natural gas (LNG) export facility in northern British Columbia.

LNG

The LNG Canada export facility is joint venture project owned 50% by Shell Canada Energy. Other project partners include affiliates of PetroChina with 20% interest, Korea Gas and Mitsubishi each with 15% stake.

Planned to be built in on 400ha of land in the industrial area of Kitimat, the proposed LNG Canada export facility is being developed in phases and is expected to provide economic and social benefits to the region.

Estimated to cost up to CAD40bn ($32.7bn), the LNG plant is expected to secured approval from the National Energy Board in 2013 to export 24mt of LNG a year for a period of 25 years.

LNG Canada CEO Andy Calitz said: "Receiving our LNG Facility Permit could not have been achieved without the important input we received from the Haisla Nation and the local community of Kitimat."

"The OGC identified several conditions that must be met by LNG Canada to design, construct and operate the project.

"We have reviewed these conditions and are confident that we will meet these conditions as they are aligned with LNG Canada's core safety values and commitment to protect the environment, the community and our workers."

The first phase involves development of two LNG trains each with the capacity to produce 6.5 million tons of LNG per annum.

The site will feature a natural gas receiving and LNG production facility, a marine terminal with the capacity to accommodate two LNG carriers, a tugboat dock and LNG loading lines linking storage tanks to the wharf.

Prior to making a final investment decision, the project is expected to ensure finalizing engineering and cost estimates, supply of labor, and achieving other critical regulatory approvals.


Image: The proposed LNG Canada export facility is expected to provide economic and social benefits in the region. Photo: courtesy of LNG Canada.