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BC offers LNG terminal site
The British Columbia government plans to hold a land auction to establish a third cluster of LNG export terminals after the Kitimat and Prince Rupert sites.
Grassy Point sits on a narrow peninsula about 18 miles north of Prince Rupert and was once the site for planned LNG exports by Dome Petroleum before the company collapsed under the weight of its debt in 1984.
Dome chose the site because of its proximity to open water and its hard-rock topography.
That project would have supplied 2.35 million metric tons a year of LNG to Japan over a 20-year period. A C$2 million liquefaction plant, C$500 million pipeline and C$1 billion fleet of Japanese-built LNG tankers were all key elements of the plan.
But Mobil Oil, on behalf of its Canadian subsidiary, said at the time that potential buyers and sellers of the LNG were unable to reach an agreement.
Submissions until March 18 Submissions for Grassy Point will be received until March 18 from proponents who will be required to identify what land they need and provide a description of their project.
The government said the land is being advertised because of some preliminary interest in the area.
No decisions have been made on how much land will be made available or whether it will be sold or leased.
ExxonMobil, 69.6 percent owner of Imperial Oil; Nexen, now owned by China National Offshore Oil Corp; and AltaGas in partnership with Japan’s Idemitsu have been exploring Canadian LNG projects, although they have yet to choose a terminal site.
Grassy Point is seen as having some drawbacks, largely its lack of road and rail connections, while the nearby Lax Kw’alaams First Nation does not have amenities to serve a large construction project and industrial site.
However, Dome did reach a benefits deal with the First Nation, which has since opened a trade office in Beijing and sold lumber to China.
—Gary Park
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