Like most major industries, LNG production requires a steady source of energy. The industry needs reliable energy for the manufacturing process, which cools natural gas to minus 160 degrees Celsius, so it can be safely shipped overseas.

Government has taken action to ensure the LNG industry has the power available to move forward in B.C.:

• Government and BC Hydro are in negotiations with LNG proponents about their energy needs and any contributions needed to support the required infrastructure for energy interconnection. These agreements will provide greater certainty for future volume and timing of LNG electricity requirements.

• There are a number of potential power configurations that are being examined, including, a blend of renewable, gas-fired and power through the grid and generating electricity by electric drives or natural gas-fired plants on site. Under all scenarios, government is focused on having the cleanest LNG industry in the world.

• In July 2012, the Province of British Columbia updated the Clean Energy Act to ensure reliable, timely and cost-competitive mix of gas-fired and renewable power generation can be accessed to ensure industry is able to meet the large energy demand from LNG.

• BC Hydro is developing its Integrated Resource Plan (IRP), which will outline B.C.'s expected growth and electricity demands over the next 20 years, including LNG needs. The plan is due to government by August 3, 2013, and will include the LNG electricity requirements.

• The priority of government remains to keep electricity rates among the lowest in North America for all British Columbians.

Contact:

Sandra Steilo
Media Relations
Ministry of Energy, Mines and Natural Gas
250 952-0617