Pacific NorthWest LNG, a large export facility proposed for Lelu Island near Prince Rupert, is seeking a licence from the National Energy Board (NEB) to export 19.68 million tonnes of LNG for 25 years beginning in 2019.
"Pacific NorthWest LNG's export application marks another positive development in our goal to provide clean natural gas to growing markets in Asia," said Premier Christy Clark.
"By increasing the demand and reach of our natural gas sector, we will create jobs, strengthen our economy and put British Columbia on a prosperous path to a debt-free future."
Progress Energy Canada (TSX:PRQ), which owns natural gas deposits in northeast B.C., will provide most of the natural gas for Pacific NorthWest LNG.
Malaysian oil and gas giant Petronas owns 90% of Pacific NorthWest LNG; the remaining 10% is owned by Japan Petroleum Exploration Company (Japex).
According to a B.C. government press release, the Pacific NorthWest LNG facility will cost between $9 billion and $11 billion to build. Construction of the plant is anticipated to bring 3,500 jobs and, once built, the facility will support 200 to 300 jobs.
"The recent submission of our NEB export licence application represents another important step in bringing our LNG project to reality," said Greg Kist, president of Pacific NorthWest LNG.
"We are encouraged by Premier Clark's commitment to creating and maintaining a positive environment for investment in the LNG business and believe that a successful LNG industry will have a significant positive economic and social impact on the province for decades to come."
Thus far, three B.C. LNG projects have been granted export licences from the NEB:
- LNG Canada was granted a 25-year licence in February to export 24 million tonnes of LNG per year;
- The Douglas Channel Energy project was granted a 20-year licence in February 2012 to export 10 million tonnes of LNG per year; and
- Kitimat LNG was granted a 20-year licence in October 2011 to export 10 million tonnes of LNG per year.
The NEB is currently evaluating two other export licence requests (in addition to NorthWest LNG's application):
- BG Group's application to export 21.6 million tonnes of LNG per year, submitted in June 2013; and
- Imperial Oil (TSX:IMO) and ExxonMobil (NYSE:XOM) Canada's application to export 30 million tonnes of LNG per year, also submitted in June 2013.
