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Vol. 19, No. 28 Week of July 13, 2014
Providing coverage of Alaska and northern Canada's oil and gas industry

BC’s LNG list grows

WesPac Midstream requests 25-year export license from National Energy Board

Gary Park

For Petroleum News

British Columbia’s lineup of LNG proposals has grown to 15 with U.S.-based WesPac Midstream requesting a 25-year export license from the National Energy Board to ship up to 3 million metric tons a year to customers in Asia, the U.S., Central America and South America.

In entering the public arena, WesPac is the second to propose a terminal in the Greater Vancouver area, targeting Delta for its Tilbury LNG plant.

It follows Woodfibre LNG, privately owned by Singapore-based RGE, which received a 25-year export license last December for 2.1 million metric tons a year from an industrial side near the town of Squamish.

FortisBC, a utility company serving 1.1 million customers, operates the Tilbury Island plant which has been scheduled for a C$400 million expansion before WesPac surfaced.

“LNG is currently produced at the Tilbury LNG plant for sale in both local British Columbia markets and regional markets, including truck-based exports to the United States by other parties,” said the WesPac application.

Construction could start in 2015

Some energy supplies from Tilbury’s storage are shipped considerable distances to domestic markets such as Watson Lake, in the southern Yukon.

FortisBC also draws on the Tilbury operation to supplement natural gas supplies during peak consumption periods in the Lower Mainland.

WesPac said that obtaining an export permit is “an important step in the development of the WesPac LNG marine terminal and further expansion of LNG export production capacity” at the plant.

Subject to receipt of the necessary approvals, construction will start in 2015, with completion scheduled for late 2016.

The company is confident it can find sufficient natural gas feedstock in Western Canada, while preliminary discussions indicate that sufficient pipeline capacity is available on the Spectra network.

Woodfibre projected for 2015 approval

Meanwhile, British Columbia Premier Christy Clark said Woodfibre should be up and running in the first quarter of 2017, assuming a final investment approval in 2015.

She said that will enable the province to start LNG shipments to Asia faster than expected.

However, the provincial government has yet to unveil the final details of its tax plan that will lead to a project development agreement with Woodfibre.

In response to those who suggest British Columbia is falling behind its rivals in the United States and Australia, Clark said that “just because the critics think (the competition) is going to be hard doesn’t mean we’re going to start waving the white towel. I’m determined we’re going to win this race.”

“And the only way we’re going to win is to aim high, work hard and put our pedal to the metal every day. We have invested a lot of time and a lot of political capital in this.”



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