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Quicksilver Files at NEB to Liquefy, Export Horn River Gas

Quicksilver Resources Canada Inc. (QRCI) has filed with regulators for a liquefied natural gas (LNG) project that would allow it to liquefy its Horn River gas production and export it to Asian markets.

The Canadian unit of Fort Worth, TX-based Quicksilver Resources Inc. is seeking permission to export up to 20 million tons per annum (mtpa) of LNG from its proposed Discovery LNG project, which would be sited near the Campbell River in British Columbia (BC).

The project would be built and operated by a partnership of QRCI and a yet-to-be-determined third party. It would convert natural gas from Northeastern British Columbia into LNG for export to Pacific Rim markets in Asia. Processed natural gas would arrive at Discovery LNG by a yet-to be determined transmission method from QRCI's sites in the Horn River Basin.

"Given the applicant's large resource base, gas supply for the project will be primarily from the applicant's proprietary gas; however, gas supply may also include gas obtained through commercial gas supply arrangements," QRCI said in its filing with Canada's National Energy Board (NEB).

The facility would be built on a remediated industrial site formerly occupied by a paper mill and would be licensed for exports for a period of 25 years beginning as early as 2021. Construction would begin after environmental assessment approvals are received and other necessary regulatory permits, approvals, and authorizations are granted. Construction for the first phase of the Project is expected to take four years. Quicksilver is undertaking initial engagement activities with the public, First Nations and government bodies.

Last year, QRCI paid$8.6 million for the former site of Catalyst Paper. The parcel includes a fully serviced, 400-acre industrial site and adjacent property near Campbell River (see Daily GPI, May 31, 2013). More than a dozen LNG export terminals have been proposed for the BC coast (see Daily GPI, July 11; July 9).

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