Federal regulator approves expanded Kitimat LNG gas export licence

CALGARY — An application from Chevron Canada for a 40-year licence to export natural gas from the proposed Kitimat LNG project has been approved despite environmental opposition, says the Canada Energy Regulator.

The application filed last spring to the National Energy Board, the CER’s predecessor, aimed to double the previously approved export licence duration and increase the potential output of the facility to 997 billion cubic feet of natural gas per year.

That’s the equivalent of about 18 million tonnes of liquefied natural gas, a substantial increase over the previous 10-million-tonne, 20-year licence which is set to expire at the end of this year.

“Chevron Canada is pleased to have received the approval of the Canada Energy Regulator for a new natural gas export licence for the proposed Kitimat LNG project,” said Chevron spokesman Leif Sollid in an email.

“The new natural gas export licence covers a 40-year term and reflects the revised Kitimat LNG plant design to one that includes up to three LNG trains to deliver up to 18 million tonnes per year of LNG. The Kitimat LNG project is designed to be the world’s first all-electric LNG plant powered by renewable hydroelectricity.”

The project is in its pre-front-end engineering design (FEED) phase and has not yet been given the go-ahead, he added.

In its decision letter, the CER notes that it rejected an application last summer from B.C. environmentalist Michael Sawyer to restart the regulatory process and hold a public hearing.

It also rejected his argument that an adequate natural gas supply hadn’t been proven, despite a Chevron expert’s estimate of Canadian and North American natural gas resources of 1,000 trillion cubic feet and 4,000 Tcf, respectively.

Chevron has previously stated the increase in scope is designed to improve the project’s “cost of supply competitiveness” compared with other LNG projects around the world. Its application envisions commissioning of the facility by 2029.

In the fall of 2018, the Shell Canada-led LNG Canada consortium announced it would proceed with its $40-billion, 14-million-tonne-per-year project, also to be built near Kitimat. It’s expected to be in service by 2024.

This report by The Canadian Press was first published Dec. 5, 2019.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RDC, Olds College get $1.1. million to boost innovation, research

‘Cutting-edge’ research into clean energy, smart ag is encouraged

Red Deer’s mayor says new emergency dispatch system could imperil patient care

Delays will result from separating fire and ambulance calls, says Veer

John Horgan calls an election in British Columbia for Oct. 24

Opposition leaders question the need for an election during the pandemic

Pleasant start to autumn

Above average temperature for the week

QUIZ: A celebration of apples

September is the start of the apple harvest

Bryson DeChambeau blasts way to U.S. Open title

Bryson DeChambeau blasts way to U.S. Open title

DeChambeau carves up US Open one divot-sized slice at a time

DeChambeau carves up US Open one divot-sized slice at a time

Calgary wants to be a World Cup freestyle, snowboard hub city

Calgary wants to be a World Cup freestyle, snowboard hub city

Forge FC downs HFX Wanderers in Canadian Premier League championship game

Forge FC downs HFX Wanderers in Canadian Premier League championship game

Among multiple tournament cancellations, IIHF president puts faith in Edmonton

Among multiple tournament cancellations, IIHF president puts faith in Edmonton

Lightning the latest to learn Dallas Stars’ defence can be downright offensive

Lightning the latest to learn Dallas Stars’ defence can be downright offensive

Jets’ Connor Hellebuyck, Oilers’ Leon Draisaitl earn NHL awards

Jets’ Connor Hellebuyck, Oilers’ Leon Draisaitl earn NHL awards

Djokovic wins Rome title: ‘I moved on’ after US Open default

Djokovic wins Rome title: ‘I moved on’ after US Open default

Most Read