By OGJ editors
HOUSTON, Aug. 28 -- Kitimat LNG Inc., a unit of Galveston LNG Inc., Calgary, has received an environmental permit—the final regulatory approval required—and now will proceed with development of its proposed LNG terminal in Kitimat, BC. The terminal will be the first on the west coast of North America.
Minister of the Environment Rona Ambrose, with responsibility for the Canadian Environmental Assessment Agency, said the proposed terminal and associated facilities are not likely to cause major adverse environmental effects. The assessment was based on a comprehensive study, public input, and the implementation of mitigation measures coupled with a follow-up program. It followed a similarly favorable decision made by the province in June.
With approval from both the Canadian and British Columbian environmental assessment agencies, and a partnership agreement with the Haisla First Nation, Kitimat LNG terminal has met all approval obligations.
Site preparation for the $500 million terminal and regasification facility will begin later this year, with operations scheduled to start in 2009.
Kitimat LNG Pres. Rosemary Boulton said: "We believe we have the three pillars in place for a successful terminal project. We have an excellent location that offers shorter sailing times and lower shipping costs for suppliers. We have a community that supports the project and wants it in Kitimat. And we have the takeaway pipe to move gas into the North American system."
Kitimat LNG and Pacific Northern Gas Ltd. recently formed a 50-50 partnership called Pacific Trail Pipelines that will build a 470-km, 30-36-in. pipeline capable of transporting 1 bcfd of regasified LNG from the proposed Kitimat terminal to Summit Lake, BC (OGJ Online, Jul 25, 2006).
North America is the largest natural gas market in the world and Canada's oil sands projects are the fastest-growing industrial gas consumers in North America.
"Demand for oil sands production and the natural gas to power these projects will continue to grow, making the project attractive to offshore suppliers," Boulton said.
