Canada: LNG Facilities Under Development In BC

Canada is a relative newcomer in the global market for liquefied natural gas (LNG). Currently, natural gas prices in North American markets are significantly lower than world markets, reflecting the significant surplus supply that exists in the North American market. The discounted value of North American natural gas compared to its value in the rest of the world is expected to persist for a significant period. For Canadian producers, LNG exports offer the opportunity to access international markets and potential exposure to higher international prices.

The British Columbia provincial government has expressed support for the development of LNG export capacity within the province. In September 2011 the provincial government released Canada Starts Here: The BC Jobs Plan. According to the plan, the provincial government has set a target of 3 LNG facilities to be in operation by 2020. It is estimated that in the past year over $6 billion in investment have been made to acquire upstream natural gas assets and to execute joint ventures in the province. In addition, the provincial government estimates that up to $1 billion has been spent to prepare for the construction of LNG infrastructure in the province.

Recently the Ministry of Forests, Lands and Natural Resource Operations in partnership with the Ministry of Energy, Mines and Natural Gas announced that it is establishing a list of pre-qualified proponents who are interested in acquiring Crown land for the purposes of developing a LNG plant marine export terminal at Grassy Point near prince Rupert, British Columbia.

Imperial Oil Ltd./Exxon Mobil, Nexen Inc./INPEX, Australia's Woodside Petroleum Ltd. and South Korea based SK E&S have recently submitted non-binding expressions of interest for Crown land at Grassy Point, British Columbia. The submissions are a preliminary step toward evaluating how many LNG sites the Grassy Point location can accommodate.

The following is a brief summary of the proposed LNG export facilities in the province of British Columbia announced to date.

  1. AltaGas Idemitsu Joint Venture
    Idemitsu Kosan Co. Ltd. and AltaGas Ltd. have entered into an agreement to form AltaGas Idemitsu Joint Venture Limited Partnership. The partnership plans to pursue opportunities to export LNG as well as liquefied petroleum gas from British Columbia to Asia. Idemitsu Kosan Co. Ltd. and AltaGas Ltd. each own a 50% interest in the partnership. The pipeline capacity required to transport natural gas to the LNG export facility is expected to be provided by Pacific Northern Gas Ltd., a wholly owned subsidiary of AltaGas Ltd. Under preliminary plans, LNG feasibility studies are anticipated to be completed in 2014 with an LNG export terminal in service by as early as 2017.
  2. LNG Canada
    LNG Canada is proposing to build a LNG export terminal in Kitmat, British Columbia. LNG Canada is a joint venture comprised of Shell Canada Ltd., Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited. The export facility is expected to have an export capacity of 2-3 billion cubic feet a day (Bcf/day). On July 27, 2012, LNG Canada applied to the National Energy Board (NEB) for a licence authorizing the export of up to 24 million tonnes of LNG per year, for a term of 25 years. On February 4, 2013, LNG Canada received approval from the NEB for a licence authorizing the export of up to 24 million tonnes of LNG per year for a term of 25 years. The project is currently undergoing an environmental assessment.
  3. Kitimat LNG
    Apache Canada Ltd. and Chevron Canada Limited each own 50 percent of the Kitimat LNG project. The facility is expected to have an export capacity of 0.75-1.50 Bcf/day. On December 9, 2010 Kitimat LNG applied to the NEB for an export licence authorizing the export of up to 468 Bcf per year for a term of 20 years. The NEB granted the export licence in October of 2011. The project is currently undergoing an environmental assessment.
  4. Pacific NorthWest LNG
    Pacific NorthWest LNG is a proposed LNG export facility on Lelu Island within the district of Port Edward on land administered by the Port of Prince Rupert. The companies sponsoring the project are Progress Energy Canada Ltd. and Petroliam Nasional Berhad (Petronas). The facility is expected to have a capacity of 1-2 Bcf/day. It is anticipated that detailed design of the facility will begin in late spring 2013. Construction is anticipated to begin by early 2015, with the earliest LNG shipments to customers occurring in late 2018. On February 19, 2013, Pacific NorthWest LNG submitted their project description to the Canadian Environmental Assessment Agency (CEAA). Currently CEAA is determining whether an environmental assessment is required for the designated project.
  5. BC LNG Export Co-Operative
    BC LNG Export Co-Operative (BC LNG) will be operated by Douglas Channel Energy Partners, which is a partnership between LNG Partners and the Haisla Nation in British Columbia. Currently, there are 16 members of the Co-operative. All members will be entitled to submit bids to supply natural gas to be liquefied and/or submit bids to purchase all LNG exported by the Co-Operative. The facility is expected to have an export capacity of 0.10 Bcf/day. On March 8 2011, BC LNG applied to the NEB for a licence to export 1.8 million tonnes per annum of LNG for a term of 20 years. The NEB granted BC LNG a 20 year licence for the export of 1.8 million tonnes of LNG annually. Recently, Golar LNG, an Asian and Bermuda-based company that runs a fleet of LNG tankers, announced they have purchased a 25 per cent stake in the project.
  6. Imperial Oil/Exxon LNG Project
    Imperial Oil Ltd. and its parent, Exxon Mobil Corp., are in the early stages of planning a LNG export business from British Columbia. The facility will build on their $3.1 billion acquisition of natural gas producer Celtic Exploration Ltd., as well as gas holdings they already own in western Alberta and in the Horn River shale gas play in British Columbia. The capacity of the facility has not yet been disclosed. As discussed below, Imperial Oil Ltd./Exxon Mobil have recently submitted non-binding expressions of interest to acquire Crown land at Grassy Point, British Columbia for development of an LNG export facility.
  7. Prince Rupert LNG
    BG Group Plc (BG Group) is in the early stages of developing the Prince Rupert LNG project. Recently, BG Group announced its plan to invest $16 billion in the proposed export terminal which is expected to have an export capacity of 3.3 Bcf/day. BG Group has also announced plans to partner with Spectra Energy Corp. to build a pipeline capable of transporting up to 4.2 Bcf/day of natural gas from production areas in northeastern British Columbia to the Prince Rupert LNG facility for export.

    BG Group has secured an agreement with the Prince Rupert Port Authority to study the feasibility of an LNG export terminal on port lands. Plans call for a final investment decision to come sometime in the next few years. On May 2, 2013 BG Group submitted a project description to CEAA and the British Columbia Environmental Assessment Office.
  8. Nexen/Inpex LNG Project
    Nexen Inc. and a consortium led by Japan's Inpex Corp. have a joint venture to develop unconventional shale gas assets in the Horn River, Cordova and Liard basins in northeastern British Columbia. As part of the joint venture, the partners intend to jointly investigate the feasibility of a potential downstream project, including an LNG export facility.
  9. Kitisualt Energy LNG Project
    Kitisualt Energy intends to establish a LNG export facility at Kitisualt, BC. The plan is in its infancy and Kitisualt Energy has not yet announced export capacity for the proposed facility.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Aird & Berlis LLP
Blake, Cassels & Graydon LLP
Osler, Hoskin & Harcourt LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Aird & Berlis LLP
Blake, Cassels & Graydon LLP
Osler, Hoskin & Harcourt LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions