December 23, 2013

Four LNG projects given 25-year export licences

Four proposed liquefied natural gas (LNG) projects in Prince Rupert and Kitimat, B.C., have received separate 25-year export licences from the National Energy Board (NEB).

“These export approvals mark a major milestone in our efforts to create jobs and grow our economy by leveraging our abundant supply of natural gas,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman.

“Now that the NEB has approved the applications, we look forward to a timely decision from the federal government so that we can ensure these companies are positioned to make final investment decisions as quickly as possible.”

The NEB announced on Dec. 16 that the export licences have been approved for the following proposed projects: Prince Rupert LNG Exports Ltd., Pacific NorthWest LNG Ltd, WCC LNG Ltd. and Woodfibre LNG Export Pte.

Prince Rupert LNG Exports Ltd. is a BG Group project. It’s a proposal to construct and operate an $11 billion to $16 billion natural gas liquefaction project on Ridley Island at the Port of Prince Rupert.

According to NEB documents, the project involves the construction of an LNG plant and associated port and infrastructure facilities to export LNG to international markets.

The project site, which covers about 255 acres, includes a deep<0x2010>water port, road access and existing infrastructure.

The facility will be developed in two phases.

Phase 1 includes two processing units with about 7 million tonnes per year, while Phase 2 will add a third processing unit to achieve a total capacity of up to 21 million tonnes per year.

Phase 1 will involve two LNG storage tanks and Phase 2 will require the addition of a third storage tank.

The marine terminal will initially include one trestle and one ship<0x2010>loading berth.

Construction of Phase 1 is scheduled to begin in 2016 and will create 9,000 person-years of employment.

BG Group has partnered with Spectra Energy to develop, design and construct a natural gas pipeline from the Cypress area of northeast B.C. to supply the project.

The project is expected to start exports in 2020.

Phase 1 will generate about 189 vessel calls per year.

The operational life of the facility is 30 years, but can be extended up to 60 years.

Pacific NorthWest LNG Ltd. is a proposal by Progress Energy Canada and Japan Petroleum Exploration (Japex) to construct and operate a $9 billion-$11 billion natural gas liquefaction on Lelu Island within the Port of Prince Rupert.

The facility will include a natural gas liquefaction plant, LNG storage and associated marine loading terminal.

The LNG Terminal is planned to initially consist of two processing units with total production not exceeding 13 million tonnes per year and two storage tanks.

The design includes provision for an additional processing unit up to about 6 million tonnes per year and another storage tank.

The first export from the LNG terminal is expected in late 2018.

Natural gas will be sourced primarily from a supply in the North Montney gas-producing region in BC, which is owned by the partners of Pacific NorthWest LNG.

Gas will be transported to the LNG export terminal by a 750 kilometre, 48 inch diameter pipeline, which is to be permitted, built, owned and operated by Prince Rupert Gas Transmission Ltd., a subsidiary of TransCanada PipeLines Limited.

WCC LNG Ltd., which is owned by ExxonMobil Canada Ltd. and Imperial Oil Resources Limited, is proposing to construct and operate a natural gas liquefaction project terminal, with LNG storage and marine loading facilities near Prince Rupert or Kitimat.

The project could involve the construction of six processing units, with a cumulative export capacity of 30 million tonnes per year.

The completion of the project is scheduled in 2021 or 2023 depending on the pace of regulatory approvals.

Several pipeline options are available including existing systems, expansions, third-party systems and new proprietary systems.

Woodfibre Natural Gas Ltd, owned by Hong Kong-based Pacific Oil & Gas Group, is proposing the construction and operation of a $1.5 billion LNG production, storage and marine carrier transfer facility on the previous Woodfibre Pulp and Paper Mill site near Squamish.

The project will be constructed and assembled in a single activity phase, which is expected to have a production capacity of between 1.5 and 2.1 million tonnes per year.

The facility’s operational life is about 25 years. All of these projects are seeking approval under the Canadian Environmental Assessment Act, 2012 and an environmental certificate under the B.C Environmental Assessment Act.

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