The National Energy Board has approved an LNG export licence for Kitsault Energy Ltd.
The point of export will be at the outlet of the loading arm of the natural gas liquefaction terminal to be located near Kitsault, British Columbia. The company first applied in late 2013.
"We have determined that the quantity of natural gas proposed to be exported by Kitsault Energy is surplus to Canadian needs," the board wrote in its Jan. 21
"The Board is satisfied that the gas resource base in Canada, and the overall North American gas resource base, is large and can accommodate reasonably foreseeable Canadian demand, including the LNG exports proposed by the applicant, and a plausible potential increase in demand."
Proponent Krish Suthanthiran bought the empty town of Kitsault in 2005.
At the time, he didn’t think of it as an LNG export facility. It has been abandoned since 1983, but Suthanthiran said in an earlier interview that the existing infrastructure and location of the site gives it an edge over the others.
The project would feed off gas from the South Peace.
Suthanthiran was looking to bring Spectra or TransCanada on board to build a pipeline to his terminal.
“Our goal is to bring a pipeline from Fort Nelson or Dawson Creek or Chetwynd so we can pick up the gas from Alberta . . . and B.C. to the coast,” he said in January 2015.
Suthanthiran was not immediately available for comment Monday, but did say he expected to issue a press release soon.
—Pipeline News North, with files from Daily Oil Bulletin