KM LNG Operating General Partnership on Thursday filed with Canada's National Energy Board (NEB) for approval to export liquefied natural gas (LNG) from the planned Kitimat LNG Terminal at Bish Cove in British Columbia.

The partnership wants to export up to 10 million metric tons of LNG per year for 20 years, which would match the two-phased capacity design of the terminal.

"The exportation of LNG is an important step forward for the Canadian natural gas industry and offers substantial benefits to the province of British Columbia in particular," said KM LNG President Janine McArdle. "The applied-for authorization will demonstrate Canadian LNG is a secure and reliable source of supply that can compete for market share in the Asia Pacific region."

The project is owned by affiliates of Apache Canada Ltd. (51%) and EOG Resources Canada Inc. (49%); the partnership was formed last spring (see Daily GPI, May 19). KM LNG is to be operator of the terminal and would produce all of the LNG to be exported at the terminal.

Last year the project signed a memorandum of understanding (MOU) with EOG to supply gas to the terminal (see Daily GPI, July 14, 2009). It also has MOUs with Korea Gas Corp. (see Daily GPI, June 2, 2009) and Gas Natural (see Daily GPI, July 7, 2009).

In November members of the Haisla Nation voted in favor of approving a lease of reserve lands required for the construction and operation of the terminal. Federal and provincial environmental authorizations for the initial design have also been obtained.

At one time the Kitimat project was intended to be an LNG import and regasification terminal; however, it was switched to a liquefaction project as it became apparent that global markets could be attractive targets for western Canadian gas (see Daily GPI, Sept. 23, 2008).

Similarly, two existing LNG import terminals in the U.S. Gulf Coast are pursuing plans to liquefy and export U.S.-sourced gas (see Daily GPI, Nov. 23).

©Copyright 2010 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.