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    Canadian Regulator Okays Kitimat LNG Export


Proposed export well in excess of Canadian needs

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Liquefied Natural Gas (LNG), Political, Regulation, News By Country, Canada

Canadian Regulator Okays Kitimat LNG Export

The commission of the Canada Energy Regulator (CER), in a letter decision released December 4, has approved an application from Chevron Canada Limited for a 40-year natural gas export licence from the expanded 18mn mt/yr Kitimat LNG project on BC’s northern coast.

The licence replaces a 20-year authorisation previously issued by the CER’s predecessor, the National Energy Board.

The new licence, which will take effect on the date of first export, provides for the annual export of not more than 996.93bn ft3 and a maximum term export volume of 35 trillion ft3.

In its decision, the CER dismissed claims from BC LNG foe Michael Sawyer that Chevron’s projected exports exceeded national surplus tests applied to gas export applications.

“The commission is satisfied that the natural gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, including the natural gas exports proposed in this application, and a plausible potential increase in demand,” the decision letter said.

Kitimat LNG, a project of Chevron and its Australian partner Woodside Energy, is an all-electric liquefaction and export terminal at Bish Cove, on BC’s Douglas Channel about 10km from Kitimat. The partners have not yet taken a final investment decision (FID) on the project, and are actively seeking equity partners for a portion of the project before taking FID.