British Columbia Oil and Gas Commission (OGC) has granted facility permit to LNG Canada to construct a liquefied natural gas export facility in Kitimat.
The permit focuses on public and environmental safety, specifying the requirements that the project must comply with when designing, constructing and operating the proposed facility.
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LNG Canada is a joint venture (JV) company consisting of Shell Canada Energy (50%) and affiliates of PetroChina (20%), Korea Gas (15%) and Mitsubishi (15%).
The project to be built by the JV is estimated to cost up to $40bn and will initially comprise two LNG trains, each with the capacity to produce 6.5 million tonnes per annum of LNG.
Going forward, the project will have four trains.
LNG Canada CEO Andy Calitz said: "The OGC identified several conditions that must be met by LNG Canada to design, construct and operate the project.
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By GlobalData"We have reviewed these conditions and are confident that we will meet these conditions as they are aligned with LNG Canada’s core safety values and commitment to protect the environment, the community and our workers."
Before making a final investment decision, the company needs to ensure that the project is economically viable and meets several other significant milestones including finalising engineering and cost estimates, in addition to obtaining other regulatory approvals.
The latest development follows the company’s receipt of provincial and federal approval for environmental assessment of the project in June 2015.
The Canadian Environmental Assessment Agency (CEAA) approved the project’s environmental assessment and the BC Environmental Assessment Office (EAO) issued an environmental assessment certificate for the proposed terminal.
Image: Members from Haisla Nation, the District of Kitimat, the LNG Canada Community Advisory Group, and LNG Canada mark the beginning of site preparation activities. Photo: courtesy of LNG Canada.
