British Columbia’s first liquefied natural gas (LNG) proposal at Grassy Point near Prince Rupert has filed its export application with Canada’s National Energy Board (NEB).
Premier Christy Clark said that Aurora was “moving forward” in plans to export domestically produced natural gas to emerging overseas markets. “This marks another step towards realising the transformative opportunity LNG presents us,” he said. “Aurora LNG’s commitment to building this new industry will create jobs and economic opportunities across the province.”
Kevin Reinhart, CEO of Nexen, said that filing the application for a licence to export BC’s natural gas was an “important” step. “However,” he continued, “we still have a lengthy process ahead of us before final investment decisions are made. Stakeholder consultation, environmental assessments and affirmation of technical and economic feasibility are required before the project can proceed.”
Aurora LNG filed its export application just over two weeks after signing a sole proponent agreement with the Province of British Columbia. The sole proponent agreement provides Aurora LNG with the exclusive right to pursue long-term Crown land tenure in the Grassy Point area.
As part of the sole proponent agreement, Aurora LNG had to file for an export licence with the NEB. To date, the NEB has issued export licences to three LNG proponents in British Columbia.
“With a vast supply of natural gas and a list competitive advantages other jurisdictions can’t replicate, BC’s LNG plans continue to gain momentum,” said Rich Coleman, Canada’s Minister of Natural Gas Development. “We look forward to working with Aurora LNG as they advance their plans to be part of our energy future.”
Aurora LNG is a joint venture by Nexen Energy ULC, a wholly-owned subsidiary of CNOOC Limited, INPEX Corporation and JGC Corporation.
The NEB is an independent federal regulator of Canada’s energy industry. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.
To date, the NEB has issued export licences to three LNG proponents:
- A 20-year export licence was approved in February 2012 for the Douglas Channel Energy project (Texas company/Haisla Nation/Golar LNG and an investor to be named later).
- A 20-year licence was granted in October 2011 to Kitimat LNG (Apache Corp. and Chevron Canada).
- LNG Canada (Shell and co-venture partners) received an export licence in February 2013.
In addition to Aurora LNG’s export application, the NEB is currently reviewing five other licence request:
- An application by Petronas/Progress Energy for the Pacific NorthWest LNG proposal in Prince Rupert.
- An export application from BG Group for the Prince Rupert LNG proposal.
- A request for export for the Woodfibre LNG Project in Squamish, BC.
- An export application for a proposal by Imperial Oil and ExxonMobil Canada. The proponents are currently assessing a site location.
- An export application by the Triton LNG Limited Partnership, a 50/50 joint venture between AltaGas Ltd. (Altagas) and Idemitsu Canada Corporation (Idemitsu). No site has been chosen.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/lng-shipping/02122013/aurora_lng_files_export_licence_application/