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Kitimat awarded export license

LNG Industry,

Canada’s National Energy Board (NEB) has approved an application by KM LNG Operating General Partnership (KM LNG) for a licence to export liquefied LNG from Kitimat, British Columbia to markets in the Asia Pacific region.

The license allows Kitimat LNG to export 200 million tpy of LNG over a 20 year period.

The feed gas for the liquefaction facility will come from producers in the Western Canada Sedimentary Basin. Gas will be delivered to the facility at Bish Cove near Kitimat by the Pacific Trail Pipeline; the liquefaction facility and the new pipeline will both require provincial regulatory decisions though.

The board satisfied itself that the quantity of gas exported does not exceed the amount needed to satisfy foreseeable future Canadian demand and the new development should significantly change the energy geography of the region whilst brining in vital export dollars.

“It’s extremely exciting news for the project. This is one of the major milestones that we required for us to take a final investment decision,” said Kitimat LNG president Janine McArdle.

“This puts Canada in a new place in terms of being a new secure supplier to the Asian markets,” she said.

Kitimat LNG ha already spent significant sums in preparing the ground for the new liquefaction facility and it is hoped that with an export license in hand the company should be able to secure long term supply deals with Asian buyers clearing the way a final investment decision.

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