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$500 million Douglas Channel LNG 'advancing toward' Final Investment Decision later this year

Things are looking better for once-troubled Douglas Channel LNG, a proposed liquefied natural gas export facility near Kitimat, now that partners in the consortium officially completed the transfer of ownership.

Things are looking better for once-troubled Douglas Channel LNG, a proposed liquefied natural gas export facility near Kitimat, now that partners in the consortium officially completed the transfer of ownership.

The Douglas Channel LNG Consortium includes AltaGas, Japan's Idemitsu Kosan Co., Ltd. EDF Trading Ltd., a subsidiary of Electricite de France S.A., and Belgium-based LNG shipper EXMAR NV.

Together, they say they are on track to make a final investment decision by the end of this year, and start shipping around 2018.

“The project is well positioned to be an early exporter of LNG off the West Coast of Canada with unique competitive advantages,” said John Rittenhouse, EDF Trading executive, in the press release.

The consortium has also made agreements with Pacific Northern Gas Ltd. to pipe the gas to the facility, and Haisla Nation for land and water use.

“The consortium is excited to advance this small scale floating LNG project and is looking forward to a long and mutually beneficial relationship with the Haisla Nation, building on the newly signed long-term land and water lot leases,” said AltaGas president and COO David Harris.

The province also expressed their approval for the new consortium, stating that this was a positive step in B.C.’s LNG export industry.

“The province of British Columbia welcomes today’s news that the partners in the Douglas Channel LNG consortium have completed the transfer of ownership and are moving forward on their proposal,” said Minister of Natural Gas Development Rich Coleman in a separate release.

AltaGas, a midstream company, is known in the Peace as the operator of the younger gas plant in Taylor and the Bear Mountain Wind Park in Dawson Creek. Earlier this year when Premier Christy Clark toured the Peace, she signed a letter of intent with AltaGas executive John Lowe to use LNG domestically. The company has plans to build small facilities throughout B.C., with the first plant planned for Dawson Creek.

 

AltaGas and Idemitsu are also partners on the much Triton LNG. That proposed project holds a permit from the NEB to export 2.3 million tonnes of LNG per year.

AltaGas has also proposed British Columbia’s first natural gas liquefaction facility for Dawson Creek, which will be for local consumption. Douglas Channel LNG is one of 21 projects that propose liquefying Canadian natural gas and shipping it to Asia.   

peacereporter@ahnfsj.ca