A new liquefied natural gas scheme has been developed to meet anticipated increases in gas demand during peak winter heating periods in southern British Columbia.
Westcoast Energy Inc., Vancouver, B.C., proposes to build and operate a short-term LNG liquefaction/storage/regasification complex in a remote area of southern British Columbia, east of Sechelt.
It would be the second LNG storage complex in the province. An LNG storage complex has operated at Delta, B.C., south of Vancouver, for 27 years.
The Westcoast complex, to be operated by Westcoast unit Westcoast Gas Services Inc., would connect with Centra Gas British Columbia Inc.'s Vancouver Island gas pipeline (see map).
Westcoast's proposal is an alternative to a plan offered by BC Gas Utility Ltd., Vancouver, to build a 312-km, 24-in. pipeline system, Southern Crossing pipeline, from Yahk to Oliver, B.C. (OGJ, June 9, 1997, p. 28). Utility commission hearings on that proposal are to begin this fall.
Westcoast's plan
Westcoast advocates a phased approach to adding gas transportation infrastructure in the region.
It has proposed the LNG peaking project, together with incremental pipeline expansions on its system and one operated by Northwest Pipeline Corp., as an alternative to BC Gas' Southern Crossing project.
Hearings on BC Gas's plan are scheduled to begin in October before the British Columbia Utilities Commission. That project would use gas reserves from Alberta instead of gas produced in British Columbia.
Because the Westcoast project is classified as nonregulated, hearings are not required for Westcoast; however, it must meet provincial environmental and regulatory approvals and emerge successfully from the public and governmental consultative process, a Westcoast official said.
Westcoast said it has begun environmental studies and work related to other approvals in anticipation of a February 1998 construction start.
The company expects to apply in September to the British Columbia Environmental Assessment Office for a project approval certificate under the province's Environmental Assessment Act.
Project details
The complex is slated to go on line in May 2000, ahead of expected peak winter heating season demand.Cost of the Westcoast project is pegged at $120 million (Canadian), or about a quarter of the cost of the BC proposal, according to Westcoast.
Westcoast's project, including a single LNG storage sphere with a capacity of 3 bcf-or about 8-10 days supply of gas for peak-use periods-would be capable of delivering a maximum 300 MMcfd of gas to buttress upward swings in demand.
Gas would be liquefied at a rate of 16 MMcfd and stored in the sphere. When needed, it would be vaporized at the complex and injected into the pipeline system.
Currently, Westcoast said, BC Gas buys most of its gas from producers in northeastern British Columbia and transports it to markets in the south of the province via existing pipelines at a cost of about 32? (Canadian)/Mcf.
According to Art Willms, Westcoast president and chief operating officer, the proposed BC Gas Southern Crossing project would involve about a 68? (Canadian)/Mcf increase in transportation charges. Westcoast said the Southern Crossing pipeline would commit customers of BC Gas to the new system for the next 30 years.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
