BC LNG gets 20-year licence to export liquefied natural gas

Friday, Feb 03, 2012

CALGARY, Feb. 2, 2012 /CNW/ - The National Energy Board (NEB or the Board) today approved an application by BC LNG Export Co-operative LLC (BC LNG) for a licence to export liquefied natural gas (LNG) from Kitimat, British Columbia primarily to Asian markets.

The export licence authorizes BC LNG to export 36 million tonnes of LNG, which is equivalent to approximately 47.9 billion m3 of natural gas, over a 20 year period. The maximum annual quantity allowed for export will be 1.8 million tonnes of LNG, which amounts to approximately 2.4 billion m3 of natural gas.

A co-operative comprised of natural gas producers, marketers and LNG buyers is a central feature of BC LNG's export proposal, where members of the co-operative will submit bids to provide natural gas to be liquefied or purchase LNG. A committee will review the bids and choose those that will yield the greatest margin to the co-operative.

Membership in the co-operative is currently comprised of thirteen parties, and additional members may join upon request. BC LNG's export model permits smaller natural gas market participants in Canada to play a part in exporting LNG.

In approving BC LNG's application, the Board satisfied itself that the quantity of gas to be exported is in excess of the requirements to meet the foreseeable Canadian demand. The Board also determined that the volumes of natural gas proposed to be exported are not likely to cause Canadians difficulty in meeting their energy requirements at fair market prices.

The Board acknowledged the potential economic benefits associated with BC LNG's project. In particular, the Board noted the benefits for the Haisla Nation, including an interest in BC LNG, and employment opportunities resulting from the development and operation of the liquefaction facility.

The NEB is an independent federal regulator of several parts of Canada's energy industry. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.

This news release and the Reasons for Decision are also available on the Board's Internet site under What's New!

SOURCE National Energy Board

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