British Columbia Premier Christy Clark and AltaGas Ltd. executive vice-president of corporate development John Lowe signed a letter of intent (LOI) to increase the use of liquefied natural gas (LNG) in the province.
The LOI commits the province and AltaGas to work towards a project development agreement to support AltaGas’ plans to build a network of small LNG facilities throughout northern B.C.
This may assist in moving the first phase of the project to final investment decision.
The first phase of the project is a liquefaction facility in Dawson Creek that would convert pipeline quality natural gas into LNG. The plant would initially serve larger customers in the power generation, space heating and oil and gas industries, and as the project develops, provide northern communities an alternative to diesel.
AltaGas expects to deliver 500,000 gallons per day of LNG by end of decade. The company expects to invest approximately $250 million, through a staged capital investment, to complete all phases of its regional LNG plan.
For Phase 1 of the regional LNG project, the LNG will be transported via road using vacuum insulated trailers.
The province is also working with FortisBC on an expansion of its Tilbury facilities, which also are intended to serve the domestic market.
