Canada’s National Energy Board (NEB) will hold a public hearing to consider BC LNG Export Co-operative LLC’s application for a 20-year license to export liquefied natural gas (LNG) to Pacific Rim markets from a facility on British Columbia’s (BC) Pacific coast at Kitimat.

BC LNG, a joint venture of the Haisla Nation and LNG Partners LLC of Houston, is proposing to make a modest start on entering the global trade, with a 250 MMcf/d terminal located next door to the six times larger, C$4.5 billion KM LNG port planned by Apache Canada, EOG Canada and Encana Corp. Both projects are seeking 20-year export licenses from the NEB.

BC LNG is seeking authorization to export up to 1.8 million metric tons of LNG annually, according to NEB. The application is based on projections that the demand for natural gas in Pacific Rim markets will continue to increase substantially over the next 20 years.

NEB said it will consider the export markets and gas supply, transportation arrangements, status of regulatory authorizations, potential environmental effects of the proposed exportation and any social effects directly related to those environmental effects.

The public hearing will consist of a written portion and potentially an oral portion. Members of the public can participate in the hearing by seeking intervenor status, filing a letter of comment or making an oral statement to the board. The NEB has invited parties to comment as part of their application to intervene on whether the oral portion of the hearing is necessary. The deadline to file documents to intervene in the hearing or make an oral statement is Sept. 1; the deadline to file a letter of comment will be announced at a later date. Online forms are available at www.neb-one.gc.ca by clicking on “submit” under “regulatory documents.”

BC LNG has reported generating a strong response with an initial call for participation in its Kitimat project (see Daily GPI, June 6).

To enable Canadian gas to break into the global trade, BC LNG has told the NEB that a liberal free-trade interpretation has to be adopted for traditionally cautious long-term export licenses. A high level of flexibility will be needed to marry the radically different overseas market dominated by long-term supply arrangements and the much swifter North American trading pattern, the company said.

The Alberta and BC energy departments have given support, with no reservations, to KM LNG’s plan for overseas shipments from a new tanker terminal at Kitimat (see Daily GPI, July 25).

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