As natural gas prices continue to decline in North America while staying resiliently high in Asia, Kitimat LNG Inc. said it is requesting formal expressions of interest from potential users of, and investors in, its proposed liquefied natural gas (LNG) export terminal at Bish Cove, BC.
In September Calgary-based Kitimat cited shifting global gas supply and demand fundamentals as reason to revise its plans for a LNG import terminal to instead construct an export terminal at Bish Cove (see NGI, Sept. 29). Rising natural gas demand in Asia and recent increases in supply in North America -- including in the U.S., Canada's traditional export market -- have led to significantly higher natural gas prices in Asia than North America. Kitimat said these market and pricing conditions provide a "compelling opportunity" for companies looking to export LNG from North America to Asia.
Interested energy companies and investors have the opportunity to submit bids for a portion of terminal capacity and bid for off-take from the terminal. Kitimat is also reaching out to potential equity investors and others interested in investing in any combination of capacity, off-take and equity.
"This is an exciting time for Kitimat LNG," said Ilene Schmaltz, vice president of supply marketing. "Numerous energy companies and potential partners have contacted us regarding opportunities for terminal capacity since we announced our decision to pursue an export terminal in mid-September. Their interest has justified taking this next step to move our project forward."
A request for expressions of interest document, now posted to the Kitimat LNG website (www.kitimatlng.com), contains detailed information on the project, processes and expected timelines. Kitimat said project highlights include:
Kitimat's previous import proposal received all regulatory, environmental and government approvals, and the company said it will work with all levels of government on approvals, processes and permitting for the export proposal. Kitimat has submitted an application for certificate amendment in relation to environmental approvals. As an import project, Kitimat received environmental approvals in June of 2006 (see NGI, June 12, 2006).
Intelligence Press Inc. All rights reserved. The preceding news report
may not be republished or redistributed, in whole or in part, in any
form, without prior written consent of Intelligence Press, Inc.