CALGARY, Jan. 7, 2016 /CNW/ - The National Energy Board (NEB) has approved the application of LNG Canada Development Inc. (LNG Canada) for a 40-year natural gas export licence with a maximum term quantity of 1494 billion cubic metres1. The issuance of this licence is subject to the approval of the Governor in Council.
This is the first 40-year natural gas export licence approved by the NEB since the amendment to the National Energy Board Act in June 2015 as well as the corresponding regulations. Previously, the maximum term length was 25 years.
When evaluating natural gas and LNG export licence applications, the NEB considers if the quantity of natural gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada.
The NEB has determined that the quantity of natural gas proposed to be exported by LNG Canada is surplus to Canadian needs. The NEB is satisfied that Canada's gas resource base, and the overall gas resource base in North America, is large and can accommodate reasonably foreseeable Canadian demand. This demand would include the LNG exports proposed by LNG Canada as well as a plausible potential increase in Canadian demand.
The approved export point is at the outlet of the loading arm of the natural gas liquefaction terminal to be located near Kitimat, British Columbia.
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.
1 Applied-for term quantity including a 6.1% annual tolerance.
SOURCE National Energy Board
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