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AltaGas to expand use of LNG in B.C.

LNG Industry,

British Columbia Premier Christy Clark and AltaGas’ John Lowe have signed a Letter of Intent to grow the use of LNG in the province. This is the first agreement of its kind for domestic LNG.

Commenting on the agreement, Premier Clark said: “LNG is a cleaner, cheaper energy source for northern communities. This Letter of Intent is another milestone for the development of B.C.'s LNG industry - not just for export, but also here at home.”

The agreement commits the Province and AltaGas to work towards a project development agreement to support AltaGas’ plans to build a network of small LNG facilities throughout northern B.C. This may assist in moving the first phase of the project to final investment decision.

Liquefaction facility

The first phase of the project is a liquefaction facility in Dawson Creek that would convert pipeline quality natural gas into LNG. The plant would initially serve larger customers in the power generation, space heating and oil and gas industries, and as the project develops, provide northern communities an alternative to diesel.

Minister of Natural Gas Development, Rich Coleman, commented: “This Letter of Intent proves that B.C. has a competitive environment for domestic LNG. Our goal now is to provide certainty around the regulatory and fiscal framework so that AltaGas can have the confidence they need to make their final investment decision.”

“AltaGas is working to bring cleaner, more affordable energy to British Columbians. We look forward to working with the Province to make LNG a viable option for B.C. residents and industry, and to help establish a competitive LNG export industry in the province as well,” added John Lowe, executive vice president corporate development, at AltaGas.

The Premier signed the agreement as part of her tour of natural gas development in the northeast.

Adapted from press release by Katie Woodward

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