Skip to main content

An application from Chevron Canada for a 40-year licence to export natural gas from the proposed Kitimat LNG project has been approved despite environmental opposition, says the Canada Energy Regulator.

The application filed last spring to the National Energy Board, the CER’s predecessor, aimed to double the previously approved export licence duration and increase the potential output of the facility to 997 billion cubic feet of natural gas per year.

That’s the equivalent of about 18 million tonnes of liquefied natural gas, a substantial increase over the previous 10-million-tonne, 20-year licence which is set to expire at the end of this year.

Story continues below advertisement

“Chevron Canada is pleased to have received the approval of the Canada Energy Regulator for a new natural gas export licence for the proposed Kitimat LNG project,” said Chevron spokesman Leif Sollid in an e-mail.

“The new natural gas export licence covers a 40-year term and reflects the revised Kitimat LNG plant design to one that includes up to three LNG trains to deliver up to 18 million tonnes per year of LNG. The Kitimat LNG project is designed to be the world’s first all-electric LNG plant powered by renewable hydroelectricity.”

The project is in its pre-front-end engineering design (FEED) phase and has not yet been given the go-ahead, he added.

In its decision letter, the CER notes that it rejected an application last summer from B.C. environmentalist Michael Sawyer to restart the regulatory process and hold a public hearing.

It also rejected his argument that an adequate natural gas supply hadn’t been proven, despite a Chevron expert’s estimate of Canadian and North American natural gas resources of 1,000 trillion cubic feet and 4,000 Tcf, respectively.

Chevron has previously stated the increase in scope is designed to improve the project’s “cost of supply competitiveness” compared with other LNG projects around the world. Its application envisions commissioning of the facility by 2029.

In the fall of 2018, the Shell Canada-led LNG Canada consortium announced it would proceed with its $40-billion, 14-million-tonne-per-year project, also to be built near Kitimat. It’s expected to be in service by 2024.

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Related topics

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies