Consortium takes over Douglas Channel LNG project

The Douglas Channel LNG Consortium said that it now has full ownership and control of the Douglas Channel LNG project as a result of the plan of arrangement completed under the companies’ creditors arrangement act proceeding.

The Consortium is comprised of AltaGas Idemitsu Joint Venture, EDF Trading and Exmar.

All of the useful assets of the former project have been transferred to the Consortium and all creditor claims have been settled. In parallel, the Consortium has also executed long-term lease agreements with the Haisla Nation regarding land and water tenure, and with Pacific Northern Gas for long-term pipeline capacity to supply gas to the project. On the strength of these contracts, assets and approvals the Consortium is advancing towards a final investment decision in fourth quarter 2015 for the Douglas Channel LNG project. The target set for commercial operation date to commence LNG exports is 2018.

The Douglas Channel LNG project will be a barge-based LNG facility on District Lot 99 near Kitimat, British Columbia. Natural gas will be sourced from Western Canada and transported to the project site for liquefaction via PNG’s existing pipeline system under a 20-year transportation contract approved by the British Columbia Utilities Commission. The project site is secured by a long-term lease with the Haisla Nation. The project will have initial nameplate capacity of 0.55 million tons per annum. The land and foreshore access provide future opportunity to expand and accommodate additional LNG processing projects.

Exmar of Belgium will be responsible for the development and operation of the floating liquefaction facility, while EDF Trading that will hold the required pipeline capacity to deliver gas to the project and will be the LNG offtaker of the project. AIJVLP, a partnership between AltaGas and Idemitsu Kosan. AltaGas will act as the project manager of the Douglas Channel LNG project.

AltaGas will act as the project manager of the Douglas Channel LNG project through its joint venture with Idemitsu.

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Image: LNG Partners