Canadian LNG hearings restarted

A Canadian government regulatory agency has resumed hearings after a six-month hold up on a project that carries the greatest hope of leading British Columbia into Asian LNG markets.

The Canadian Environmental Assessment Agency review process into the application by Pacific NorthWest LNG, operated by Malaysia’s state-owned Petronas, has so far taken more than 270 days and is almost a year behind the original timetable.

The agency began its hearings in April 2013, estimating the deliberations would take no longer than two years.

At best, it now hopes to issue a draft report in January at the same time a separate document outlining environmental conditions for the consortium would be available, with a final verdict anticipated in the spring of 2016.

Once the draft report and conditions are released, public, environmental and aboriginal groups will have 30 days to submit their comments.

Pacific NorthWest had initially targeted the launch of exports up to 12 million metric tons a year by late 2019, but observers believe the startup will probably be delayed for at least another year.

The environmental hearings have so far faced five “time-outs,” mostly stemming from concerns about the impact on a salmon habitat of plans to build a liquefaction plant and tanker terminal on an island in the Port of Prince Rupert.

British Columbia Natural Gas Development Minister Rich Coleman has signaled his government’s growing anxiety over “losing the window of opportunity” for Pacific NorthWest, which is estimated to involve total capital spending of C$36 billion.

Michael Culbert, president of Pacific NorthWest, said he is hopeful that new scientific studies commissioned by the consortium will open the way to new discussions with the Lax Kw’alaams First Nation council and a newly-elected mayor.

- GARY PARK