The National Energy Board has approved a 25-year licence that will allow Pacific NorthWest LNG to export 22.2 million tonnes of LNG per year from a plant that is proposed to be built near Prince Rupert.
Issuance of the licence is subject to the approval of the Governor in Council.
The board noted in its decision that recent developments in gas production technology have resulted in a significant increase in the Canadian gas resource base and North American gas supply. One of the major impacts of this increase is lower demand for Canadian gas in traditional gas markets in the United States and eastern Canada. As a result, the Canadian gas industry is seeking to access overseas gas markets through exports of LNG.
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Prince Rupert Gas Transmission Project (PRGT) welcomed the news that the National Energy Board has granted a license to its partner, Pacific NorthWest LNG to export up to 22.2 million tonnes of liquefied natural gas (LNG) per year for 25 years beginning in 2019. The NEB decision is subject to approval of the Governor in Council.
“The positive decision by the National Energy Board follows the recent release of a joint federal-provincial study which concluded that the marketable unconventional gas resource of the Montney formation in northeastern B.C. is one of the largest in the world,” said John Dunn, Vice-President, PRGT. “The project by Pacific NorthWest LNG will be an important component in building a thriving LNG industry on the West Coast, and we look forward to working with them in the transportation of natural gas from the North Montney fields in N.E. B.C. to their LNG terminal near Prince Rupert.”
The PRGT project is going through the regulatory approval process, with plans to begin pipeline construction in 2015, with deliveries to the LNG facility to begin in late 2018.
The proposed LNG facility represents an investment of $9 billion to $11 billion, and will create up to 3,500 direct jobs during construction. Once operational, the LNG facility will create 200 to 300 permanent, full-time jobs.