BACKGROUNDER
The approval of liquefied natural gas (LNG) export licences is critical to the future of Canada and LNG will help to create economic security.
Under the National Energy Board Act, the National Energy Board (NEB) regulates the import and export of natural gas. When reviewing LNG export licence applications, the NEB assesses whether Canada’s supply of natural gas is large enough to easily accommodate our domestic needs as well as the proposed LNG exports, while having regard to the trends in the discovery of gas in Canada.
The NEB approved the applications, by Pacific NorthWest LNG, Prince Rupert LNG, WCC LNG and Woodfibre LNG, to export LNG from British Columbia (B.C.) on December 16, 2013.
Natural Resources Minister Greg Rickford announced the final Government of Canada approval for the four above-mentioned LNG export licences on March 26, 2014. This is the last step in the Government of Canada’s approval process for the issuance of an LNG export licence.
These four export licences authorize the export of a total of up to 73.38 million tonnes per annum (mtpa) of LNG. Since 2011, the NEB has already issued three 20- to 25-year LNG export licences for up to 36 mtpa and is now reviewing five additional applications.
The operation of LNG terminals, import or export, generally falls under provincial regulation, while the export of LNG is federally regulated.
Each project requires regulatory review to ensure that facilities can be constructed and operated safely for Canadians and the environment.
Woodfibre LNG
Proposed by Pacific Oil & Gas Limited, this facility in Squamish, BC would export up to 2.1 mtpa of LNG. Pending regulatory approvals, proponents are targeting an in-service date of late 2016. A provincial environmental assessment is underway.
Pacific NorthWest LNG
Pacific NorthWest LNG is a proposed LNG export terminal on Lelu Island near Prince Rupert, B.C.The project is proposed by a consortium led by Progress Energy Canada Ltd., which is owned by Petronas, with interests from Japex and PetroleumBRUNEI. Pending regulatory approvals, the proponents are targeting to begin operations in late 2018 for this proposed 19.68 mtpa LNG export facility. Provincial and federal environmental assessments are underway.
WCC LNG
Proposed by ExxonMobil Canada Ltd. and Imperial Oil Resources Limited, WCC LNG proposes to export 30 mtpa of LNG.Project proponents have yet to identify a project site, but have indicated they are considering locations in the vicinity of Kitimat and Prince Rupert.Pending regulatory approvals, they expect to be operational in the 2021 to 2023 time frame.
Prince Rupert LNG
BG Group is proposing that the 21.6 mtpa Prince Rupert LNG facility be located on Ridley Island, near Prince Rupert, B.C. Pending regulatory approvals, BG Group is targeting beginning exports in 2021. Provincial and federal environmental assessments are underway.
