Kitimat Liquefied Natural Gas receives international export licence

On Thursday, Oct. 13, the National Energy Board approved an application by the KM LNG (Liquefied Natural Gas) Operating General Partnership for a licence to export LNG from Kitimat B.C. to markets located in the Asia Pacific Region.

The new licence allows KM LNG to export 200 million tonnes of liquefied natural gas over a 20 year period, with the maximum amount allowed for export being 10 million tonnes.

The source of gas supply will come from producers in the Western Canada Sedimentary Basin. Upon reaching Kitimat via the Pacific Trail Pipeline, the natural gas will then be liquefied at a terminal to be built in Bish Cove, located close to the Port of Kitimat.

Construction and operation of the pipeline and the terminal will require provincial regulatory decisions.

This is the first application for an LNG export licence that the board has considered since the deregulation of the natural gas market back in 1985.

While approving the application, the Board has assured that the quantity of exported gas doesn’t exceed the amount required to meet foreseeable Canadian demand.

The export liquefied natural gas will not only open new markets for Canadian gas production, but the Board also believes that continuing development of shale gas resources will lead to further increases in the availability of natural gas for Canadians.

The board also acknowledges the potential economic benefits associated with the project, which include employment opportunities due to the development of the LNG terminal and the Pacific Trail Pipeline.

 

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