Woodside gets NEB approval for British Columbia LNG exports

Woodside Energy Holdings Pty. Ltd. has received approval from Canada’s National Energy Board on its application for a 25-year natural gas export license with a maximum term quantity of 807 billion cu m, plus or minus 15%. Exports would leave a proposed LNG liquefaction plant near Grassy Point, north of Prince Rupert, BC.

Woodside would implement Grassy Point LNG in two phases. Phase 1 would produce 6-15 million tonnes/year (tpy) with Phase 2 increasing overall capacity to 20 million tpy. Woodside plans to begin construction in 2017 for a 2021 in-service date.

The board determined that the quantity of gas proposed to be exported by Woodside Energy is surplus to Canadian needs. NEB was also satisfied that the gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, the natural gas exports proposed in Woodside’s application, and a plausible potential increase in demand.

NEB acknowledged that, when taken together, LNG export license applications submitted to it to date represent a significant volume natural gas exports from Canada, but noted that all of the applicants are competing for a limited global market and face numerous development and construction challenges. NEB believes that not all LNG export licenses issued by it will be used or used to their full allowance and therefore evaluates each application on its own merit.

The board last year granted Aurora Liquefied Natural Gas Ltd. approval to export a maximum of 24 million tpy of from a proposed liquefaction plant at Grassy Point (OGJ Online, May 1, 2014).

Contact Christopher E. Smith at chriss@ogjonline.com.

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