National Energy Board issues 40-year licence to PNW LNG

Photo by Government of Canada

FORT ST. JOHN, B.C. – The National Energy board has decided to issue PNW LNG a 40-year licence that was requested.

PNW LNG were seeking the following conditions:

  • A 40-year Licence, starting on the date of first export;
  • An early expiration clause where, unless otherwise authorized by the Board, the Licence will expire ten years after the date of Governor in Council approval of the Licence, unless exports have commenced on or before that date;
  • A maximum annual export quantity of 34.62 billion cubic metres (109 m3 ) of natural gas, including a 15 per cent annual tolerance;
  • A maximum quantity of 1 368.8 109 m3 of natural gas over the term of the Licence1 ; and
  • The point of export of LNG from Canada shall be at the outlet of the loading arm of the proposed natural gas liquefaction terminal to be located on Lelu Island within the district of Port Edward, on Federal land administered by the Prince Rupert Port Authority, British Columbia, Canada

Pacific NorthWest LNG originally applied for the licence on February 16, 2016. They were asking the NED to approve the request subject to section 117 of the National Energy Board Act for a licence to export natural gas, in the form of LNG.

In a letter, the NEB explains the decision to grant the licence.

“The Board has decided to issue a 40-year Licence to Pacific NorthWest, subject to Governor in Council approval, to export natural gas subject to the terms and conditions described in Appendix I to this letter.

We have determined that the quantity of natural gas proposed to be exported by Pacific NorthWest, for a term of 40 years, is surplus to Canadian needs. The Board is satisfied that the natural gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, including the natural gas exports proposed in this Application, and a plausible potential increase in demand.

In order to ensure that Pacific NorthWest exports natural gas that meets the specifications set out in the Regulations throughout the term of its Licence, the Board has included a condition that the natural gas to be exported must meet the definition of natural gas in the Regulations.”

 

 

 

Comments

Have something you'd like to add? Read our comment policy by clicking here.