LNG Canada Enters EA Application Review Phase

abarrelfullabarrelfull wrote on 10 Nov 2014 06:30
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LNG Canada’s Application for an Environmental Assessment (EA) Certificate for its proposed liquefied natural gas (LNG) export facility in Kitimat, B.C. has been accepted by the B.C. Environmental Assessment Office (EAO) and today entered the 180-day Application Review Phase.

The EAO’s acceptance of LNG Canada’s Application marks the culmination of more than three years of environmental studies, design work and engagement with local communities and Aboriginal Groups. The Application includes details regarding the proposed project’s economic and social benefits, environmental effects, and mitigation measures to avoid or reduce those effects.

“Our Application’s acceptance is a significant milestone for our proposed project and a demonstration of LNG Canada’s commitment to consider local knowledge and insight to inform how the project can benefit local First Nations and communities, and for the region to achieve its social, economic and environmental aspirations,” said Andy Calitz, CEO, LNG Canada.

LNG Canada has selected natural gas turbines for the liquefaction process to minimize fuel use and greenhouse gas emissions. LNG Canada also recently signed a power agreement with BC Hydro to use clean, renewable electricity from BC Hydro for the electricity needed for the facility.

LNG Canada estimates the proposed facility will have a greenhouse gas emission intensity of about 0.15 tonne CO2e/tonne LNG produced, which is lower than benchmarks recently introduced by the B.C. Government and among the lowest CO2-emitting LNG facilities in the world.

“The Haisla people strongly support this project but have always believed that it should be as ‘green’ as possible, and this use of clean hydro power is good news. This also adds more certainty to the context around the project in which we will participate — our people are keen to realize the significant employment and other economic benefits to come,” said Chief Councillor Ellis Ross, Haisla Nation

“Coastal First Nations welcomes this decision by LNG Canada,” said Art Sterritt, Executive Director of the Coastal First Nations. “Minimizing the environmental impact of the B.C. LNG industry is our primary concern and LNG Canada’s choice of a power solution demonstrates tangible action to address it. The region’s abundant renewable energy should be an important component of a B.C. LNG industry.”

Project benefits

The Application details the estimated benefits offered by the proposed project, including:

Approximately $94 million in municipal and regional taxes during project construction
Approximately $15 million per year in municipal and regional taxes during operations
Employment of an average of 4,500 people during the first phase of construction, with a potential peak workforce of 7,500 people
300 to 450 people employed during first-phase operations, increasing to between 450 and 800 people should the full project be built (four processing units, or “trains”)
More than $8 billion spent on goods and services in Canada during construction, with at least $3 billion spent in B.C.
Approximately $85 million of goods and services purchased from northwest B.C. businesses during operations should the full project be built
While today’s announcement is an important step forward for the proposed project, LNG Canada must ensure the project is economically viable, and meet several other significant milestones related to gas supply, engineering and cost estimates, supply of labour and regulatory approval prior to making a final investment decision.

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