Golar Joins Douglas Channel LNG Project, Canada

Golar LNG said that the company recently entered into firm framework agreements to establish a partnership that will take the Douglas Channel LNG Project forward through the development and execution phase. The other partners in the Project include the Haisla First Nation of Kitimaat Village British Columbia, Canada, LNG Partners, LLC of Houston Texas and a large energy company.

Through such framework agreement Golar has secured a minimum 25% stake in the project and the partners have now made a firm commitment to fund activities up to and including the FID, which is anticipated to be made in the third quarter of 2013.  Project FID remains subject to obtaining the remaining required permits, execution of certain project agreements and EPC contracts for the key components of the planned infrastructure.

The project will consist of a 0.6-0.7 million metric tonne per annum (mmpta) capacity liquefaction barge and associated facilities. The project’s existing National Energy Board licence allows it to export up to 1.8 mmtpa for a period of 20 years. The total capital expenditures for the project (including development costs) are estimated to be $500 million.

Golar’s contribution of 25% of the Projects current funding requirements, subject to positive FID, provide Golar with a firm option to invest a minimum of 25% of Project capital and right to a proportional share of the LNG off-take.

The DC project partners have also agreed to investigate a future liquefaction train in the Douglas Channel in connection with the successful expansion of the Pacific Natural Gas Pipeline. The company has an option to take a minimum of 25% stake in the future liquefaction train developed by the DC LNG Project.

Golar will have the opportunity to provide shipping to the project and believes this will lead to other shipping opportunities in the region.

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LNG World News Staff, May 31, 2013; Image: Douglas Channel LNG