Export licence extension for Woodfibre LNG granted by energy regulator

SQUAMISH, B.C. — The export licence for a liquid natural gas (LNG) facility located near Squamish has been extended by the Canada Energy Regulator (CER).

Woodfibre LNG applied to the CER earlier this year to have its export licence extended, saying additional time was needed to “accommodate contingencies in the construction and commissioning schedules associated with the construction of the LNG facility.”

Previously, its export licence would have expired in June 2027, the same year the still-under-construction facility is expected to be ‘substantially complete,’ according to the project website. It sought to extend that licence to June 2030.

According to a letter from the CER, organizations that commented when the licence was initially granted several years ago were given an opportunity to provide input on the extension application.

The two groups that did submit comments — Atlantic Pacific Spaceline Enterprise (APSE) and the environmental group My Sea to Sky — both argued against granting the extension.

The CER’s letter states Woodfibre’s application argued the “overall function” of the North American gas market hasn’t changed in the years since its original licence was granted.

APSE disputed that claim, saying changes to the market brought on by Canada’s ongoing trade dispute with the United States and the war in Ukraine made a report included in Woodfibre’s original application no longer valid. 

The company also expressed concerns regarding the CER’s ability to adequately monitor the facility.

My Sea to Sky, meanwhile, raised concerns about the extension’s effect on the climate, saying Woodfibre didn’t adequately address environmental concerns in its application.

The volunteer group also argued allowing further LNG exports from Canada would increase the price of gas in Canada, citing “independent reports and news articles” showing energy prices rising in the United States and Australia as a result of increased LNG exports.

Woodfibre issued a rebuttal letter disputing the claims of the two groups, saying despite “recent geopolitical events,” the natural gas market has “functioned efficiently” with no indications that will change in the coming years.

In regards to concerns of natural gas price changes, Woodfibre argued that while some increases were expected, they were unlikely to significantly affect the North American market and “may be in the public interest.”

Woodfibre also argued the remaining complaints issued by the two groups were outside the scope of its application.

In assessing whether to approve the application, the CER found the amount of natural gas being exported at the facility isn’t expected to have any impact on the amount of LNG being reserved for Canadian use.

As such, the CER ultimately elected to grant the extension.

To view the full breakdown from the CER, look below.