Sanctioning has taken another step forward for what would be the second liquefied natural gas (LNG) export terminal on Canada’s west coast under a facility approval granted by the British Columbia Oil and Gas Commission.

“This permit is a large piece of our puzzle, and with it in place we are working toward a final decision to proceed with this project this summer,” said President David Keane of Woodfibre LNG, which would be sited on the coast of British Columbia (BC).

The provincial decision is the third step forward in three months by the C$1.6 billion ($1.2 billion) project that would export up to 260 MMcf/d from a former pulp mill site on the coast north of Vancouver.

The success string also includes securing a supply source, with a corporate takeover by Singapore-based project owner Pacific Oil & Gas Ltd. of Calgary producer Canbriam Energy Inc., and landing a sales contract with BP Gas Marketing Ltd.

The facility permit allows Woodfibre to begin construction at any time over the next two years, or to seek extensions if delays develop.

Commitments to safe and clean operations, made to earn previously granted BC environmental approval, are included in the commission decision.

The project also has a Canadian gas export license, a cooperation and benefits settlement with the native tribe beside the terminal site, a pipeline service agreement with utility FortisBC, and a sales arrangement with China’s CNOOC Gas and Power Trading & Marketing Ltd.