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Canadian LNG export project awards first contracts

BC LNG Export Co-Operative LLC, an entity formed in 2011 to promote LNG exports from the Douglass Channel LNG project in British Columbia, recently finalized contract awards both for feed-gas and for LNG purchase and offtake for Train 1.

The Douglas Channel LNG project, being developed by the Haisla Nation and Douglas Channel Gas Services Ltd., will be Canada's first operating LNG export plant. Train 1, with capacity of 700,000 tonnes/year, is scheduled to start up in second-quarter 2015.

Award for LNG purchase and offtake was made to Golar LNG Ltd. and LNG Partners LLC; award for feed-gas supply, to LNG Partners LLC.

The announcement said LNG Partners had agreed in principle to work with Tenaska Marketing Canada, a division of TMV Corp., to procure and manage feed-gas for the Douglass Channel plant.

Golar LNG and LNG Partners are finalizing a financing package for the project that would provide for construction and commissioning, subject to issuance of final required permits, said the announcement. Golar LNG and LNG Partners are requesting proposals for the purchase of contracted LNG on a destination ex-ship basis.

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