British Columbia’s nascent liquefied natural gas (LNG) industry has moved closer to reality in recent weeks. On July 8, 2013, Pacific NorthWest LNG submitted its export application with Canada’s National Energy Board (NEB), seeking permission to export 19.68 million tonnes of LNG annually for 25 years.
Including this recent NEB filing, a total of six LNG project proposals in BC have received, or have submitted an application for, an export licence. According to a BC government press release, these projects include:
- Douglas Channel Energy Project – Proponents are LNG Partners and Haisla Nation. Located in Kitimat (floating facility). Received a 20-year export licence in February 2012, authoring the export of 1.8 million tonnes of LNG a year.
- Kitimat LNG – Proponents are Apache Canada Ltd. and Chevron Canada Limited. Located in Kitimat. Received a 20-year export licence in October 2011, authoring the export of 10 million tonnes of LNG a year.
- LNG Canada – Proponents are Shell Canada Ltd., Korea Gas Corporation (KOGAS), Mitsubishi Corporation and PetroChina Company Limited. Located in Kitimat. Received a 25-year export licence in February 2013, authoring the export of 24 million tonnes of LNG a year.
- Pacific NorthWest LNG – Proponents are PETRONAS, Progress Energy Canada Ltd. and Japan Petroleum Exploration Co. Located in Prince Rupert. Submitted an application to the NEB on July 5, 2013, to export 19.68 million tonnes of LNG annually for 25 years.
- Prince Rupert LNG – Proponent is BG Group plc. Located in Prince Rupert. Submitted an application to the NEB in June 2013, to export 21.6 million tonnes of LNG annually for 25 years.
- WCC LNG Ltd. project – Proponents are Imperial Oil Resources Limited and ExxonMobil Canada Ltd. Will be located in the vicinity of Kitimat or Prince Rupert. Submitted an application to the NEB in June 2013, to export 30 million tonnes of LNG annually for 25 years.
Although final investment decisions have not been made, the continued advancement of project permitting and regulatory matters bodes well for BC’s emerging LNG export industry. The BC government is counting on LNG exports becoming a reality, given its projections that this sector could boost the provincial economy, provide thousands of jobs and create a BC Prosperity Fund worth over $100 billion.