Canada: The BC LNG Sector Remained Active Through 2013: End-Of-Year Update

British Columbia's emerging liquefied natural gas (LNG) sector remained active throughout the second half of 2013. Governments and proponents negotiated agreements and projects advanced through various regulatory processes. Given continued interest in BC's new industry, we prepared the following end-of-year update that summarizes notable LNG sector activity.

Since our mid-year summary:

  • An LNG export licence application was filed with the National Energy Board (NEB) for the Woodfibre LNG Project. The Woodfibre LNG Project is located near Squamish and has a proposed capacity of about 2.1 million tonnes per year.
  • The BC government approved $115.8 million in royalty credits under the province's 2013 Royalty Credit Program in order to encourage the construction of new resource roads and pipelines and advance the development of the LNG industry. Preliminary estimates suggest that the 2013 royalty credits will generate $445 million in government revenue over a five-year period and encourage another $320 million in new capital spending by industry.
  • In October, Minister of Natural Gas Development Rich Coleman made a 12-day LNG development trip to meet with LNG proponents and investors in China, South Korea and Malaysia.
  • Triton LNG Limited Partnership, a 50-50 joint venture between AltaGas Ltd. and Idemitsu Canada Corporation, filed a LNG export licence application to export up to 2.3 million tonnes of LNG annually over a 25-year term. As the Triton LNG facility proposes to utilize a floating liquefaction storage and offloading vessel, the proponents are considering locating the project at Kitimat or Prince Rupert.
  • As discussed in our prior post, a federal-provincial study concluded that natural gas reserves contained in the Montney Formation that straddles BC and Alberta are more than double than previously estimated, equivalent to 145 years of supply at Canada's current consumption levels.
  • BC's Environmental Assessment Office (EAO) and Oil and Gas Commission (OGC) entered into a memorandum of understanding (MOU) intended to streamline environmental assessments and permitting for LNG and other reviewable projects by reducing duplication and improving timelines. Our prior post discusses the implications of the MOU in greater detail.
  • The BC government and Nexen Energy ULC, a subsidiary of CNOOC Limited and its joint venture partners, INPEX Corporation and JGC Corporation, entered into an agreement that provides the proponents with an exclusive right to move forward with planning an LNG facility (called Aurora LNG) at Grassy Point, near Prince Rupert. This agreement resulted from the Request for Expression of Interest initiated by the BC government in February 2013.
  • Aurora LNG also filed an NEB export licence application, seeking to export up to 24 million tonnes of LNG annually over a 25-year term.
  • As discussed in our prior post, the BC government announced that it will delay its launch of the tax regime for the LNG sector. Although Minister Coleman previously indicated that the province was close to finalizing applicable tax rules and expected to provide details by the end of November, the announcement will be delayed until early next year so that the government may better understand the business models of LNG projects and formulate a more effective and efficient tax regime.
  • On a jobs and trade mission to Asia that began in late November, Premier Christy Clark signed a three-year memorandum of energy co-operation and development with Japan's Minister of Economy, Trade and Industry Toshimitsu Motegi to expand co-operation between the governments and foster energy-related business opportunities. Premier Clark also renewed a memorandum of understanding (MOU) on mutual co-operation with Japan Oil, Gas and Metals National Corporation (JOGMEC) under which JOGMEC and the province agree to work together and share information on natural-gas related activities. The MOU between BC and JOGMEC was originally signed in May 2012.
  • JAPEX also announced plans to build an LNG terminal in Japan's Fukishima prefecture to receive its share of LNG from the Pacific NorthWest LNG project. The terminal will commence operations in 2018 and will receive 1.2 million tonnes of LNG annually.
  • Petroleum Brunei announced that it has agreed to acquire a 3-per-cent stake in the Pacific NorthWest LNG project led by Malaysia's PETRONAS. Since acquiring Progress Energy Resources Corp. and launching the Pacific Northwest LNG project, PETRONAS has sought new partners to help develop the large-scale project and associated gas fields. Japan Petroleum Exploration Co. (JAPEX) acquired a 10% stake in the Pacific NorthWest LNG project earlier this year.
  • As discussed in our prior post, the BC government confirmed its approval of BC Hydro's Integrated Resource Plan (IRP). As BC Hydro's long-term planning document, the IRP sets out how BC Hydro anticipates meeting the anticipated future electricity needs of the province, including demand from the new LNG sector. In the IRP, BC Hydro committed to encouraging the LNG industry to acquire clean or renewable electricity from the utility, including for ancillary power at larger-scale plants and for both compression and ancillary requirements of smaller projects. BC Hydro also recognized that it may need to adjust its load-resource balance forecasts if LNG-related power demands are less or greater than originally estimated.

BC's LNG sector is expected to remain active throughout 2014 as proponents advance environmental assessment and permitting processes, receive decisions from the NEB on export licence applications, and secure additional investors and LNG purchasers for their respective facilities. We will continue to monitor the sector and continue to update our blog throughout the New Year.

To view original article, please click here.

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.

In association with
Related Topics
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