Michael Culbert, CEO of Progress Energy Canada and Pacific NorthWest LNG said the National Energy Board’s recommendation for approval of the North Montney Mainline project to the federal government is a welcomed decision.
NEB’s approval of rolled in tolls for the initial phase of the project satisfied a key deliverable required for a Final Investment Decision on the PNW LNG project.
“This decision is a key component to fulfilling a core requisite that informs our Final Investment Decision,” says Michael Culbert. “With this decision in hand – and awaiting other regulatory approvals, Petronas and our partners will continue to work cautiously toward a FID on the Pacific NorthWest LNG project.”
The North Montney Mainline will substantially increase capacity on the Nova Gas transmission system, providing transportation infrastructure from Progress Energy’s upstream natural gas reserves to the proposed Prince Rupert Gas Transmission Line which will supply Pacific NorthWest LNG’s liquefaction export terminal near Prince Rupert, British Columbia.
Over the past several months, Pacific NorthWest LNG has finalized its Project Development Agreement (PDA) with the Government of British Columbia, received its BC Environmental Assessment Certificate.
Progress Energy appraised its natural gas reserves in the North Montney, and is now moving into the development phase with a concentrated effort to increase production in anticipation of sending natural gas feedstock to B.C.’s west coast.
A Final Investment Decision by Petronas and partners is contingent upon core components of the value chain gaining additional clarity. These components include competitive Engineering, Procurement, Construction and Commissioning (EPCC), pipeline and vendor costs, clarity in the federal regulatory process, approval of the PDA by the BC government and projected international market conditions.
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Image: PNW LNG