Pacific NorthWest LNG's export facility has been granted a 40-year export licence by the NEB.

National Energy Board grants PNW LNG 40-year export licence

The National Energy Board (NEB) has approved a 40-year natural gas export licence for the Pacific NorthWest LNG project

The National Energy Board (NEB) has approved a 40-year natural gas export licence for the Pacific NorthWest LNG project, up from the previous licence granted of 25 years.

In a letter dated Oct. 13 to Pacific NorthWest LNG’s head of finance Afendy Ali, the NEB explains its approval of the new licence, which takes effect starting the first day of export. Previously the NEB approved the 25-year application in December 2013.

On Feb. 16, 2016, Pacific NorthWest LNG (PNW LNG) applied for the amendment to add 15 years to the original export licence.

The NEB determined that the amount of natural gas to be exported in the new time frame doesn’t exceed the surplus remaining for use in Canada, a concern that is addressed by the NEB under section 118 of the NEB Act.

An Implications and Surplus Assessment Report to the NEB by PNW LNG’s Roland Priddle is referenced in the decision. In it, Priddle states that gas resource assessments are growing in Canada, thanks in part to new techniques to extract resources from the ground like horizontal drilling, increased drilling rig productivity and industry competition. Priddle states that the resource base in Canada is large enough to account for any potential increase in natural gas demand, even with competing LNG facilities. As well, Priddle stated that U.S. domestic natural gas consumption is decreasing its reliance on Canada’s resource base.

He concluded that “there is no evidence that Canadian gas markets would not continue to perform efficiently into the mid-2060s and beyond.”

The NEB noted it was satisfied that the natural gas resource base is large enough to accomodate foreseeable Canadian demand. Also, the NEB has taken into account the numerous other LNG export licences that have been granted, not all of which they expect to be utilized.

“In aggregate, the LNG export licence applications submitted to the board to date represent a significant volume of LNG exports from Canada. However, all of these LNG ventures are competing for a limited global market and face numerous development and construction challenges,” wrote the NEB. “Consistent with the evidence submitted in Pacific NorthWest’s application, the board believes that not all LNG export licences issued by the board will be used or used to the full allowance.”

The export licence allows for a maximum annual export quantity of 34.62 billion cubic metres of natural gas, including a 15 per cent annual tolerance and the point of export is the outlet of the loading arm of the proposed LNG terminal on Lelu Island.

It’s not the first time that a project has been granted a licence extension. In July, ExxonMobil’s WCC LNG received a 15-year extension (40 years total) to their NEB export licence, and in January, the NEB approved its first 40-year export licence to Kitimat’s Shell-led LNG Canada project in Kitimat.

Also possessing North Coast LNG export licences are Orca LNG (25 years), Woodside’s Grassy Point LNG (25 years), Aurora LNG (25 years), Triton LNG (25 years) and BG Canada’s Prince Rupert LNG (25 years).

No project has received a final investment decision from its proponents and only Pacific NorthWest LNG has received conditional provincial and Government of Canada approval.

“On February 16, 2016, Pacific NorthWest LNG applied to the National Energy Board for a 40 year export license, which if approved, would replace the Project’s current 25-year NEB  export license,” said Spencer Sproule, PNW LNG senior advisor of corporate affairs on Friday.

“This 40-year export license is a result of amended legislation through the Economic Action Plan 2015 Act, which allows the National Energy Board to issue export licenses for natural gas for a maximum term of 40 years. Pacific NorthWest LNG welcomes the recommendation from the National Energy Board to approve the application, and looks forward to a decision from the Governor in Council.”

Just Posted

BC Bus North service extended to September

Transportation ministers have extended the service, which was set to expire at the end of May

Nisga’a leader named UNBC chancellor

Dr. Joseph Arthur Gosnell is the first Indigenous leader to assume the role

Northwest local governments team up to fill in future employment gaps

Around 17,000 jobs will need to be filled in the region over the next eight years

Poetry month sees launch of “Oona River Poems” at Rupert library

Peter Christensen consciously and lovingly documents our physical and psychological landscapes

Lily Swanson celebrates her 90th birthday in Prince Rupert

The Acropolis Manor resident has 22 grandchildren and is a great grandmother to 25 children

Prince Rupert students share portraits of kindness with children in Peru

The Memory Project gives teens a chance to sharpen their art skills and global awareness

‘B.C. cannot wait for action’: Top doctor urges province to decriminalize illicit drugs

Dr. Bonnie Henry says current approach in ‘war on drugs’ has criminalized and stigmatized drug users

Canfor curtailing operations across B.C.

Low lumber prices and the high cost of fibre are the cause of curtailment

B.C. woman, 76, challenges alcohol-screening laws after failing to give breath sample

Norma McLeod was unable to provide a sample because of her medical conditions

New report on 2017 wildfires calls for better coordination with B.C. First Nations

Tsilhqot’in National Government documents 2017 disaster and lists 33 calls to action

B.C. youth coach banned amid sexual harassment, bullying scandal: Water Polo Canada

Justin Mitchell can’t take part in Water Polo Canada events or clubs

Wilson-Raybould: Feds want to just ‘manage the problem’ of Indigenous Peoples

Former federal justice minister speaks at First Nations Justice Council meeting in B.C.

Haida youth travels to New York for UN forum on Indigenous issues

Haana Edensaw presented her speech in Xaad Kil, Masset dialect of the Haida language

Female real estate agents warned of suspicious man in Metro Vancouver

The man requests to see homes alone with the female agent, police say

Most Read