Canada’s National Energy Board (NEB) has approved two applications for 25 year natural gas export licences.
A licence was approved for Aurora Liquefied Natural Gas Ltd (Aurora LNG) to export LNG. The export point would be in the vicinity of Prince Rupert, British Columbia (B.C.), at the outlet of the loading arm of a proposed liquefaction terminal.
An export licence was also approved for Oregon LNG Marketing Company LLC (Oregon LNG). The export point would be in the vicinity of Kingsgate and Huntingdon, B.C., via existing natural gas pipelines.
Issuance of both licences is subject to the approval of the Governor in Council.
Recent developments in gas production technology have resulted in a significant increase in the Canadian gas resource base and North American gas supply. One of the major impacts of this increase is lower demand for Canadian gas in traditional gas markets in the US and eastern Canada. As a result, the Canadian gas industry is seeking to access overseas gas markets.
When evaluating natural gas and LNG export licence applications, the NEB considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada. Each application is assessed on its own merits. The NEB determined that the quantity of gas proposed to be exported is surplus to Canadian requirements. The NEB is satisfied that the gas resource base in Canada, as well as North America, is large and can accommodate reasonably foreseeable Canadian demand, these export applications, and a potential increase in demand. The Canadian natural gas market will continue to respond appropriately to changes in supply and demand.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/02052014/neb_approves_lng_export_applications_520/