Office of the Premier
The southern parcel of Grassy Point near Prince Rupert could have a new liquefied-natural-gas (LNG) export facility, thanks to an agreement between the Government of British Columbia and Woodside.
"Grassy Point is an ideal site for LNG development, and this is the second agreement we've signed," said Premier Christy Clark. "Every step forward brings us closer to realizing the opportunity presented by LNG, bringing billions in investment and 100,000 new jobs throughout the province."
The Province and Woodside signed a sole proponent agreement, which provides the company with the exclusive right to negotiate a long-term tenure for an LNG facility at the south site of Grassy Point.
"British Columbia is building a strong, competitive new industry," said Minister of Natural Gas Development, Rich Coleman. "This agreement with Woodside is another promising LNG proposal for our province which will create jobs and economic activity."
"Woodside looks forward to working with the Government of British Columbia, the First Nations and the community as we assess the feasibility of an LNG development at Grassy Point," said Peter Coleman, Woodside CEO and managing director.
LNG development at Grassy Point is subject to various regulatory approvals and an investment decision by the proponent. According to the agreement Woodside must meet several milestones, including applying for an export permit from the National Energy Board and submitting project descriptions with British Columbia and Canada to successfully complete the environmental assessment process.
Woodside joins an expansive list of industry proposals making strides in the province, many of which are already investing in B.C.'s natural-gas sector and boosting local economies. There are currently more than 10 LNG project proposals in British Columbia.
The Province will continue to work with industry, First Nations and communities to ensure lasting benefits are achieved as the industry develops.
Map of Grassy Point: http://www.newsroom.gov.bc.ca/downloads/Grassy_Point_Map_January_16_14.pdf
Quick Facts:
- Woodside is the largest independent operator of oil and gas in Australia, where the company has an extensive network of LNG operations.
- Today's agreement is the result of a Request for Expression of Interest initiated by the Province in February 2013.
- The first sole proponent agreement was reached in November 2013 with Aurora LNG for an adjacent, northern parcel of land.
- Assuming five LNG plants and the supporting pipelines are built, more than 39,000 annual jobs will be created over a nine-year construction period and 75,000 jobs once these plants are fully operational.
Learn More:
Woodside: http://www.woodside.com.au
British Columbia's Liquefied Natural Gas Strategy: http://www.empr.gov.bc.ca/SiteCollectionDocuments/LNGreport_web_130627.pdf
LNG One Year Update: http://www.gov.bc.ca/com/attachments/LNGreport_update2013_web130207.pdf
List of LNG proposals in B.C.: http://engage.gov.bc.ca/lnginbc/lng-projects/
A backgrounder follows.
Media Contact:
Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252
Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617
BACKGROUNDER
Agreement between B.C. and Woodside
On Jan. 16, 2014, the Government of British Columbia announced a sole proponent agreement with Woodside.
The sole proponent agreement provides Woodside with the exclusive rights to pursue long-term Crown land tenure in the Grassy Point area.
The agreement is for the southern parcel of Grassy Point, which covers 693.6 hectares of land, plus foreshore land equalling 243.9 hectares.
Woodside will be examining the viability of constructing a liquefied natural gas (LNG) plant and export terminal at this location.
Under the agreement, Woodside will pay $4 million to the Province upon signing the sole proponent agreement. Another $6 million will be paid by Woodside on, or before, the first anniversary of the agreement, as long as the proponent wants the arrangement to continue, and a further $7 million is due on or before the second anniversary of the agreement.
The right to acquire the land for construction or long-term use remains a matter of future negotiations and the Province will consult local First Nations. If the land is acquired by Woodside, the $17 million submitted to the Province will be subtracted from the final sale price.
As part of the agreement, specific milestones must be achieved:
- Woodside must obtain an export licence from Canada's National Energy Board within the first year of the agreement.
- Woodside must also submit Project Description - with Canada and with the Province British Columbia - to initiate the environmental assessment process.
Development at Grassy Point is subject to various regulatory approvals and a final investment decision by the proponent.
Media Contact:
Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252
Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617
