British Columbia's new liquefied natural gas (LNG) sector
was particularly lively in the weeks since
our mid-December update. To keep our readers up-to-date,
we have prepared the following brief summary of recent notable LNG
The National Energy Board (NEB) approved applications for 25
year natural gas export licences to export LNG to:
Prince Rupert LNG Exports Ltd., proposed by the BG Group, for a
maximum of 21.6 million tonnes per year and 592 million tonnes over
Pacific NorthWest LNG Ltd., proposed by PETRONAS/Progress
Energy, for a maximum of 19.68 million tonnes per year and 555
million tonnes over the term;
WCC LNG Ltd., for Imperial Oil and ExxonMobil Canada Ltd., for
a maximum of 30 million tonnes per year and 800 million tonnes over
the term; and
Woodfibre LNG Export Pte. Ltd., proposed by Woodfibre Natural
Gas Limited, for a maximum of 2.1 million tonnes per year and
60.375 million tonnes over the term.
Kitsault Energy Ltd. applied to the NEB for a permit to export
a maximum of 20 million tonnes of LNG per year, for a maximum of
960 million tonnes over a 25-year term. The proposed project
will be located at Kitsault, BC, a privately-owned abandoned mining
town on the north coast of BC. Kitsault Energy does not own
any gas reserves and is seeking to finalize supply arrangements for
the proposed export plant.
The Kitimat LNG Project, a joint venture between Chevron Canada
Limited and Apache Canada Limited, awarded an engineering,
procurement and construction (EPC) contract for the facility to a
joint venture of Texas-based Fluor Corp. and Japan-based JGC
Corp. A final investment decision for the Kitimat LNG Project
is expected later in 2014.
The BC government announced that it has
entered a "sole proponent agreement" with Woodside
regarding the southern parcel of Grassy Point near Prince
Rupert. This agreement provides Woodside with the exclusive
right to negotiate a long-term Crown tenure for an LNG facility at
the site. For those that are not familiar with Woodside, it
is the largest independent operator of oil and gas production in
We expect that BC's LNG sector will be active throughout
2014 as proponents take steps towards making their respective final
investment decisions. We will continue to monitor the sector and
continue to update
our blog accordingly.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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