Count acting BG Group Canada president Steve Swaffield among those who don’t believe all of the LNG export terminals proposed for the northwest will come to fruition.
There are currently six LNG export terminals proposed in the region — three in Kitimat and three in Prince Rupert including the BG terminal on Ridley Island, the Pacific Northwest LNG terminal on Lelu Island and a possible terminal on Grassy Point — but on May 15 Swaffield told the Prince Rupert and District Chamber of Commerce that seeing six built is unlikely.
“There have been many projects announced and there may be some consolidation taking place… Ultimately I believe two to three projects will go ahead, though I don’t know which those will be,” he said, noting his company is looking for partners in the project.
“The main question I am asked, particularly in Prince Rupert, is, is this real… I believe it is very real.”
The BG Group is currently in the environmental assessment with baseline work underway on Ridley Island.
“Prince Rupert is ideally location and that is why we are here,” he said, adding the need for LNG in countries across Asia is only on the rise.
“We’re taking a low cost product to a high value market… On Ridley Island there is road and rail access, a naturally deep port and we are only 11 days from Japan.
Swaffield said the company is expecting a final investment decision in 2016 to get gas to the growing Asian markets in 2020 or 2021. In the meantime, the company has budgeted for an office in Prince Rupert in the coming months.
“It’s something we’re looking at for this summer. It would mainly be an informational office, with Herb [Pond] and maybe one other person, to start and would grow as activity related to the project picks up,” he said.