CALGARY, Feb. 2, 2012 /CNW/ - The National Energy Board (NEB or the
Board) today approved an application by BC LNG Export Co-operative LLC
(BC LNG) for a licence to export liquefied natural gas (LNG) from
Kitimat, British Columbia primarily to Asian markets.
The export licence authorizes BC LNG to export 36 million tonnes of LNG,
which is equivalent to approximately 47.9 billion m3 of natural gas, over a 20 year period. The maximum annual quantity
allowed for export will be 1.8 million tonnes of LNG, which amounts to
approximately 2.4 billion m3 of natural gas.
A co-operative comprised of natural gas producers, marketers and LNG
buyers is a central feature of BC LNG's export proposal, where members
of the co-operative will submit bids to provide natural gas to be
liquefied or purchase LNG. A committee will review the bids and choose
those that will yield the greatest margin to the co-operative.
Membership in the co-operative is currently comprised of thirteen
parties, and additional members may join upon request. BC LNG's export
model permits smaller natural gas market participants in Canada to play
a part in exporting LNG.
In approving BC LNG's application, the Board satisfied itself that the
quantity of gas to be exported is in excess of the requirements to meet
the foreseeable Canadian demand. The Board also determined that the
volumes of natural gas proposed to be exported are not likely to cause
Canadians difficulty in meeting their energy requirements at fair
The Board acknowledged the potential economic benefits associated with
BC LNG's project. In particular, the Board noted the benefits for the
Haisla Nation, including an interest in BC LNG, and employment
opportunities resulting from the development and operation of the
The NEB is an independent federal regulator of several parts of Canada's
energy industry. Its purpose is to regulate pipelines, energy
development and trade in the Canadian public interest.
This news release and the Reasons for Decision are also available on the
Board's Internet site under What's New!
SOURCE National Energy Board
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