Another Kitimat LNG project receives LNG export license

Plans to export Canadian-produced natural gas as LNG moved ahead Feb. 2 when Canada’s National Energy Board approved application by BC LNG Export Cooperative LLC for a license to export LNG from Kitimat, BC, mainly to Asian markets.

The license authorizes BC LNG to export 36 million tonnes of LNG, equivalent to about 47.9 billion cu m of natural gas, over 20 years. The maximum quantity allowed for export will be 1.8 million tonnes/year of LNG, or about 2.4 billion cu m of natural gas.

BC LNG is owned by LNG Partners LLC, Houston, and HN DC LNG LP, each with a 50% interest. HN DC LP, a limited partnership under the laws of British Columbia, was established for the benefit of the Haisla Nation, a First Nation group many of whom reside at the head of the Douglas Channel, BC, according to NEB documents.

The NEB action follows the granting of another 20-year LNG export license in October 2011 to KM LNG Operating General Partnership. That project would be based at Bish Cove, near Kitimat (OGJ Online, Oct. 14, 2011).

In this latest decision, NEB acknowledged the potential economic benefits associated with BC LNG’s project. In particular, it noted the benefits for the Haisla Nation, including an interest in BC LNG, and employment opportunities resulting from the development and operation of the liquefaction facility.

Contact Warren R. True at warrent@ogjonline.com.

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