British Columbia Premier Christy Clark and AltaGas executive vice president corporate development John Lowe, signed a Letter of Intent to grow the use of liquefied natural gas (LNG) in the province. This is the first agreement of its kind for domestic LNG.
“LNG is a cleaner, cheaper energy source for northern communities,” said Premier Clark. “This Letter of Intent is another milestone for the development of B.C.'s LNG industry - not just for export, but also here at home.”
The Letter of Intent commits the Province and AltaGas to work towards a project development agreement to support AltaGas’ plans to build a network of small LNG facilities throughout northern B.C. This may assist in moving the first phase of the project to final investment decision.
The first phase of the project is a liquefaction facility in Dawson Creek that would convert pipeline quality natural gas into LNG. The plant would initially serve larger customers in the power generation, space heating and oil and gas industries, and as the project develops, provide northern communities an alternative to diesel. Natural Gas is the cleanest burning fossil fuel.
“This Letter of Intent proves that B.C. has a competitive environment for domestic LNG,” said Minister of Natural Gas Development Rich Coleman. “Our goal now is to provide certainty around the regulatory and fiscal framework so that AltaGas can have the confidence they need to make their final investment decision.”
“AltaGas is working to bring cleaner, more affordable energy to British Columbians,” said John Lowe, executive vice president. “We look forward to working with the Province to make LNG a viable option for B.C. residents and industry, and to help establish a competitive LNG export industry in the province as well.”
The Premier signed the agreement as part of her tour of natural gas development in the northeast.
To read the Letter of Intent, visit: http://ow.ly/yeQCq
- AltaGas expects to deliver 500,000 gallons per day of LNG by end of decade.
- AltaGas expects to invest approximately $250 million, through a staged capital investment, to complete all phases of its regional LNG plan.
- For Phase One of the Regional LNG project, the LNG will be transported via road using vacuum insulated trailers.
- The Province is also working with FortisBC on an expansion of their Tillbury facilities also intended to serve the domestic market.
- This is the third letter of intent signed by the Province in relation to LNG. While on her Asia Trade Mission, the Premier signed letters of intent with both Woodfibre and Petronas for LNG export facilities.
- There are currently 13 proposed LNG export projects in B.C., nine of which already have approved export licences from the National Energy Board, including Triton LNG in which AltaGas has a 50% interest.
LNG 101: A Guide to British Columbia’s Liquefied Natural Gas Sector: http://www.gov.bc.ca/mngd/doc/LNG101.pdf
For an update on B.C.'s LNG strategy, visit: http://www.gov.bc.ca/com/attachments/LNGreport_update2013_web130207.pdf
For more information on B.C.’s Skills for Jobs Blueprint, visit: www.workbc.ca/skills
Office of the Premier
Ministry of Natural Gas Development
Senior Communications Advisor