NEB Approves Jordan Cove LNG Natural Gas Export License

CALGARY, Feb. 20, 2014 /CNW/ - The National Energy Board (NEB or Board) approved an application for a 25 year natural gas export licence to Jordan Cove LNG L.P. (Jordan Cove LNG) to export natural gas. The license is for a maximum term amount of 442.68 109 m3. The approved export points are existing natural gas pipelines that cross the Canada/US border near Kingsgate and Huntingdon, BC.

Issuance of the licence to export natural gas is subject to the approval of the Governor in Council (GiC).

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.

When evaluating natural gas and LNG export licence applications, the 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 Board determined that the quantity of gas proposed to be exported is surplus to Canadian requirements. The Board is satisfied that the gas resource base in Canada, as well as North America, is large and can accommodate reasonably foreseeable Canadian demand, this natural gas export application, and a potential increase in demand. The Canadian natural gas market will continue to respond appropriately to changes in supply and demand.

The Board continuously monitors the Canadian and North American natural gas market. The Board has technical expertise in gas market supply and demand fundamentals and geological resource assessment. Natural gas market assessments, including long-term and short-term reports, are available on the Board's website. For a full list, please see Energy Reports - Natural Gas.

The National Energy Board is an independent federal regulator of several parts of Canada's energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest. For more information on the NEB and its mandate, please visit www.neb-one.gc.ca.

This news release is also available on the Board's Internet site under What's New!

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SOURCE National Energy Board

For further information:

Whitney Punchak
whitney.punchak@neb-one.gc.ca
Communications Officer
Telephone: 403-299-3122
TTY (teletype): 1-800-632-1663