Canada’s National Energy Board approved Pacific NorthWest LNG’s application to amend the term of the liquefied natural gas export license from 25 to 40 years.
Initially, the NEB approved Pacific NorthWest LNG to export the chilled gas for a period of 25 years in December 2013.
However, since the approval, the legislative regime changed, allowing for issuance of export licenses for a maximum term of 40 years, for which PNW LNG applied in February this year.
Speaking of the conditional approval, minister of natural gas development of the province of British Columbia, Rich Coleman , said that the extended export license is “providing proponents with the assurance they need to secure customer contracts and, ultimately, reach a final investment decision.”
He added that the latest development improves Pacific NorthWest LNG’s long-term certainty, a statement issued on Friday reads.
Petronas-led multi-billion dollar project received the environmental approval at the end of September. The Malaysian company is currently reviewing the LNG market outlook and overall project commerciality before it develops the proposal for the final investment decision. The company intends to review the impacts on the overall cost structure and schedule of the project.
The proposed facility, to be located on Lelu Island within the District of Port Edward, will comprise an initial development of two LNG trains of approximately 6 million tons per annum each, and a subsequent development of the third train of approximately 6 mtpa.
Petronas, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI are all shareholders in Pacific NorthWest LNG and the associated natural gas supply.
LNG World News Staff