CALGARY, April 16, 2014 /CNW/ - The National Energy Board (NEB or Board) approved an application for a 25 year natural gas export licence from Triton LNG Limited Partnership to export liquefied natural gas (LNG). The license is for a maximum term amount of 93.73 109m3. The proposed export points would be located near either Kitimat or Prince Rupert, British Columbia at the outlet of the loading arm of a proposed natural gas liquefaction terminal. The liquefaction terminal has not been constructed and will require further regulatory approval before construction can begin.
Issuance of the licence to export LNG is subject to the approval of the Governor in Council.
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 LNG 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!
SOURCE: National Energy Board
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