Kitimat LNG Gets Federal OK

by Ship & Bunker News Team
Thursday January 24, 2013

The Canadian government has announced it has cleared the way for the construction of the Kitimat LNG (KLNG) liquefied natural gas (LNG) export plant on the Haisla First Nation's Bees Indian Reserve.

"The Kitimat LNG facility will create well-paying jobs in British Columbia, while giving Canadian energy producers access to important overseas markets," said the Honourable John Duncan, Minister of Aboriginal Affairs and Northern Development.

The plant, one of three proposed LNG export facilities at Kitimat, is backed by Apache Canada Ltd. and Chevron Canada Ltd and is being constructed on Haisla Nation reserve land at Bish Cove, approximately 650 kilometres (400 miles) north of Vancouver.

The plant will use gas from northeast British Columbia, which will be delivered to the coast by pipeline and then exported to Asia and other markets.

It has a licence to export 10 million tonnes of LNG per year.

The project got a boost last month when Chevron Corp. announced that its Canadian subsidiary, Chevron Canada Ltd., would acquire 50 percent interest in it, providing the backing of an experienced global LNG player.

If everything moves forward smoothly, the first LNG shipments from Kitmat could take place in 2018 or 2019, while full capacity will probably take until next decade, according to the investment news site Seeking Alpha.