BC Hydro and LNG Canada cooperate on Kitimat power supply

BC Hydro and LNG Canada have signed a power agreement to allow for LNG Canada to use clean, renewable electricity from BC Hydro for some of the power needed for the Kitimat LNG export facility.

The agreement ensures that if LNG Canada makes a positive investment decision, their facility will be an environmental leader.

LNG in B.C.

British Columbia Premier, Christy Clark, commented: "This agreement is an important step forward towards getting the LNG industry up and running. It's about providing certainty for one of British Columbia's largest and most promising proposals."

This is the first power agreement signed in British Columbia with an LNG proponent. The agreement covers a portion of the electricity supply that will be required to power the commissioning and operation of LNG Canada’s proposed facility (all auxiliary power needs). LNG Canada will use natural gas turbines to drive the refrigerant compressors to chill natural gas into liquid form.

Comments

Andy Calitz, CEO of LNG Canada

"We heard very clearly from First Nations, the local community, and the provincial government how important it is that LNG Canada considers environmental factors when planning for the proposed project. The decision to power our facility with renewable electricity in combination with highly efficient natural gas turbines reflects our commitment to listen to, and act on feedback from our stakeholders, when possible."

Ellis Ross, Chief Councillor, Haisla Nation

"The Haisla people strongly support this project but have always believed that it should be as 'green' as possible, and this use of clean hydro power is good news. This also adds more certainty to the context around the project in which we will participate - our people are keen to realise the employment and other economic benefits to come."

Art Sterritt, Executive Director of the Coastal First Nations

"Coastal First Nations welcomes this decision by LNG Canada. Minimising the environmental impact of the B.C. LNG industry is our primary concern and LNG Canada's choice of a power solution demonstrates tangible action to address it."

Rich Coleman, Minister of Natural Gas Development

"When we released our LNG strategy, we committed to provide LNG proponents with sufficient energy for their operations while protecting rates for British Columbians. We are implementing that plan. LNG Canada will invest in new infrastructure to upgrade BC Hydro’s grid while helping to keep rates low for existing customers."

Bill Bennett, Energy and Mines Minister

"Today's agreement between BC Hydro and LNG Canada is another sign of the growing demand for electricity in British Columbia. BC Hydro's Integrated Resource Plan indicates that B.C. will need new energy by 2024, assuming an initial LNG load of 3000 gigawatt hours. Any demand above this would further accelerate and increase B.C.’s need for new power."

Jessica McDonald, President and CEO, BC Hydro

"Electricity is the backbone of our economy. For decades, BC Hydro has powered industry in B.C. with clean, renewable electricity while maintaining among the lowest rates in North America. We're pleased to help power the LNG industry in B.C. This new agreement provides greater certainty on future load growth while delivering long-term benefits for our customers."

The agreement also details the development, operation and maintenance of transmission infrastructure required to connect the proposed facility to BC Hydro' grid. LNG Canada will fund the improvement of the infrastructure.

LNG Canada is a joint venture company comprised of Shell Canada Energy, and affiliates of PetroChina, Korea Gas Corporation and Mitsubishi Corporation.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05112014/kitimat-lng-power-agreement-signed-1729/