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LNG-Related Pipeline Gets Environmental Nod in BC

The proposed Pacific Trail Pipeline -- which would serve the planned Kitimat liquefied natural gas (LNG) export terminal in British Columbia -- received a favorable environmental assessment from Canadian regulators under the Canadian Environmental Assessment Act, the project's developer said.

The Kitimat to Summit Lake Pipeline Looping (KSL) Project is not likely to cause significant adverse environmental effects as long as certain mitigation measures are taken, regulators said. The project received a BC Environmental Assessment Authority environmental certificate last year.

The KSL Project entails the construction of approximately 463 kilometers (288 miles) of 36-inch diameter pipeline and compression facilities to enable Pacific Trail to transport up to 1 Bcf/d of gas from Summit Lake, which is east of the terminal site, to Kitimat LNG Inc.'s proposed LNG export terminal to be located at Bish Cove near Kitimat, BC.

Pacific Trail is a partnership of Pacific Northern Gas Ltd. and Galveston LNG Inc., the parent company of Kitimat LNG Inc., and was formed to develop the KSL Project.

Kitimat LNG Inc. has received provincial and federal permits and certificates for the terminal. The KSL Project and the terminal, the first of its kind to be located on the West Coast of Canada, are expected to commence operation in 2013 subject to the satisfaction of a number of conditions, including finalizing commercial arrangements.

Earlier this year Mitsubishi Corp. acquired capacity in the terminal as well as a minority interest in the project (see Daily GPI, Jan. 14). The terminal project was originally conceived as an LNG regasification facility, but changing global LNG market dynamics caused developers to rethink their plans and target Asian markets with LNG from Western Canada (see Daily GPI, Dec. 12, 2008; Dec. 1, 2008; Sept. 23, 2008).

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