CER approves Chevron Canada application to export LNG

Canada’s Energy Regulator (CER), formerly the National Energy Board (NEB), approved an application by Chevron Canada to export LNG from Kitimat, BC, mainly to Asian markets, for a term of 40 years.

In its application, Chevron Canada said that it intends to export up to 18 million tonnes (997 bcf) of liquefied natural gas per year from the proposed Kitimat LNG project with markets in the Pacific Rim (Japan, South Korea, and China) as intended targets. 

The approval doubles the timeline of a 2011 license agreed to by the NEB. At the time, the regulators approved a 20-year license to export 10 million tonnes/year (tpy) of natural gas. That agreement is set to expire this year. 

In its recent approval, the CER found that the natural gas that Chevron plans to export would be surplus to the needs of Canadians, both today and in the future. 

Chevron will operate a proposed natural gas liquefaction export terminal to be constructed and operated at Bish Cove, near Kitimat, BC. The development of the terminal will proceed by way of an unincorporated joint venture between Chevron and KM LNG Operating General Partnership. A revised plant design calls for up to three LNG trains to deliver up to 18 million tpy of LNG as the world's first all-electric LNG plant powered by renewable hydroelectricity from BC Hydro, Chevron said.

Commissioning of the terminal is anticipated to be no later than 2029, depending on the pace of regulatory approvals and a final investment decision by the project's sponsors, Chevron said in its filing. 

CER said the decision does not come into effect until it is approved by Governor in Council.