Petronas' Pacific NorthWest LNG Welcomes Approval for B.C Pipeline
Canada’s National Energy Board (NEB) on Wednesday it will recommend federal approval of the North Montney Mainline Project proposed by Calgary-based TransCanada Corp.
Michael Culbert, President and CEO of Progress Energy Canada Ltd and Pacific NorthWest LNG, welcomed the announcement and said it satisfies a key deliverable required for a final investment decision (FID).
“This decision is a key component to fulfilling a core requisite that informs our FID,” said Culbert. “With this decision in hand – and awaiting other regulatory approvals, Petronas and our partners will continue to work cautiously toward a FID on the Pacific NorthWest LNG (PNW LNG) project.”
In December last year, Petronas and its partners in the LNG project decided to defer FID stating that costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive FID can be undertaken..
The North Montney Mainline will substantially increase capacity on the Nova Gas Transmission System, providing transportation infrastructure from Progress Energy’s upstream natural gas reserves to the proposed Prince Rupert Gas Transmission Line which will supply Pacific NorthWest LNG’s liquefaction export terminal near Prince Rupert, British Columbia.
“While great strides are being made to bring fiscal and regulatory certainty to our project, in order to achieve a positive FID, Canadian liquefied natural gas will need to be competitive with other supply sources available to the Asian markets,” Culbert stated.
After two years of successfully appraising Progress Energy’s natural gas reserves in the North Montney, the company is now moving into the development phase with a concentrated effort to increase production in anticipation of sending natural gas feedstock to B.C.’s west coast.
“We expect 2015 to be a watershed year for the province and the country,” says Culbert. “It is our hope that Pacific NorthWest LNG will be the leader in helping our nation realize the LNG opportunity that will benefit generations to come.”
Pacific NorthWest LNG is planning to build a world-scale LNG export facility on Lelu Island in the District of Port Edward, British Columbia. The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tonnes per annum (MTPA) each, and a subsequent development of a third train of approximately 6 MTPA. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada in northeastern British Columbia.
Petronas, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI are all shareholders in Pacific NorthWest LNG and the associated natural gas supply.