LNG Canada has become the first proposed British Columbia-based LNG-export project to secure a facility permit, which sets out 30 requirements for design, construction and operation for its planned terminal at Kitimat.
The Shell-led joint venture announced yesterday that the British Columbia Oil and Gas Commission has issued the permit. Shell and its partners Mitsubishi, Kogas and PetroChina plan to develop a 24 million tonne a year (mta) export venture, starting with two 6.5 mta trains and aiming to expand to four.
LNG Canada is one of more than 20 proposed export projects in British Columbia. So far, four have received environmental approval.
However, none of the proposed projects have reached a final investment decision, due to falling oil and gas prices, slowing LNG demand in Asia’s mature import markets, high development costs and opposition from the Green lobby and First Nations groups.
News sources in Canada say the US$40 billion project must also secure a permit from Fisheries and Oceans Canada. The provincial government hopes to earn C$100 billion (US$71 billion) from LNG exports over 30 years and to create up to 100,000 jobs.