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Canada: NEB Grants Four LNG Export Licenses

December 17, 2013

NEB Grants Four LNG Export Licenses

The National Energy Board (NEB) has approved applications for 25 year natural gas export licences to export liquefied natural gas to:

  • Prince Rupert LNG Exports for a maximum term amount of 824.58 109 m3,
  • Pacific NorthWest LNG for a maximum term amount of 798.96 109 m3,
  • WCC LNG for a maximum term amount of 1,103 109 m3, and
  • Woodfibre LNG Export for a maximum term amount of 85.52 109 m3.

Issuance of the licences to export LNG is subject to the approval of the Governor in Council.

Recent developments in gas production technology have resulted in a significant increase in the Canadian gas resource base and North American gas supply. One of the major impacts of this increase is lower demand for Canadian gas in traditional gas markets in the United States and eastern Canada. As a result, the Canadian gas industry is seeking to access overseas gas markets through exports of LNG.

When evaluating LNG export licence applications, the NEB Board considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada. Each application is assessed on its own merits. The NEB Board determined that the quantity of gas proposed to be exported for each application will be surplus to Canadian requirements.

The NEB Board is satisfied that the gas resource base in Canada, as well as North America, is large and can accommodate reasonably foreseeable Canadian demand, the LNG exports in these applications, and a potential increase in demand. The Canadian natural gas market will continue to respond appropriately to changes in supply and demand.

Quick facts:

Prior to today, the NEB has issued export licences to three other LNG proponents:

  • A 20-year export licence was approved in February 2012 for the Douglas Channel Energy project (Texas company/Haisla Nation/Golar LNG and an investor to be named later).
  • A 20-year licence was granted in October 2011 to Kitimat LNG (Apache Corp. and Chevron Canada).
  • LNG Canada (Shell and co-venture partners) received an export licence in February 2013.
  • If five LNG facilities move forward, the cumulative gross domestic product benefit to British Columbia could total $1 trillion by 2046.
  • LNG export operations in B.C. could create over 100,000 new jobs in British Columbia and new revenues for government to support a debt-free future.

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LNG World News Staff, December 17, 2013