Chevron seeks NEB licence that could nearly double production at Kitimat LNG

Nearly double the 10-million-tonne, 20-year licence it was previously granted

Chevron Canada has applied to the National Energy Board to nearly double the potential size of the Kitimat LNG facility it hopes to build with Australian partner Woodside Energy.

In a filing dated Monday and posted on the NEB website, the Canadian branch of California-based giant Chevron Corp. says it is applying for a 40-year licence to export up to 28.23 billion cubic metres of natural gas per year, with commissioning of the facility anticipated by 2029.

READ MORE: B.C. NDP moves to provide tax credits, tax cut for LNG Canada

That’s the equivalent of about 18 million tonnes of liquefied natural gas and is nearly double the 10-million-tonne, 20-year licence it was previously granted, which is set to expire at the end of this year.

In a statement, the company says the increase in scope comes after a review that focused on improving the project’s “cost of supply competitiveness” relative to other LNG projects around the world.

“Since 2015, Chevron and Woodside have made significant progress in enhancing Kitimat LNG competitiveness, reducing LNG unit costs by over 45 per cent and incorporating a new all-electric LNG plant design,” said Chevron spokesman Leif Sollid in an email.

“The plant design features an advanced compact module design enabling low-cost operations, high efficiency and high availability.”

The partners have not made a final investment decision, nor have they set a date to do so, but the expanded project is seen as another hopeful sign for B.C.’s nascent LNG industry.

Last fall, the Shell Canada-led LNG Canada consortium announced it would proceed with its $40-billion, 14-million-tonne-per-year project, also to be built near Kitimat.

“The LNG Canada project should assist in establishing regional infrastructure, building workforce and contractor capacity, and reducing regulatory and project execution risks and uncertainties as the first major LNG project in B.C.,” said Sollid.

“Kitimat LNG has the opportunity to take advantage and build on this foundation.”

He said the developers are assessing B.C.’s recent introduction of legislation to encourage more LNG development through a natural gas tax credit and repealing the Liquefied Natural Gas Income Tax Act, which it said created barriers for investment.

The new plan for Kitimat LNG envisions initially building two six-million-tonne production “trains” with the option to add a third later, as opposed to the original two-train proposal.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Sylvan Lake woman recounts her experience trekking Mt. Everest

Perle Campbell and her daughter travelled to Nepal in May to hike to base camp on Mt. Everest

Sylvan Lake Midget Buccaneers secure playoff spot

The Midget Buccs defeated the Didsbury Chargers 11-6 on June 15 to close out regular season play

AMBER ALERT: Alert cancelled after child located safe and unharmed

Alert cancelled after child located safe and unharmed

Sylvan Lake Yettis clinch league’s top spot

The Yettis have a first round bye and will play the second round of playoffs on home court, July 5-7

MP Blaine Calkins tables rural crime bill

Bill C-458 was tabled Friday, and proposes to amend the Criminal Code to account for rural residents

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

Wetaskiwin RCMP look for wanted man after liquor store robbed

Wetaskiwin RCMP investigate armed robbery

Air Canada expects Boeing 737 Max to resume flying by September or October

Air Canada isn’t worried about safety of the planes, says vice-president

More than 700 wildlfire evacuees in Alberta can soon return to Metis community

Evacuees from the Paddle Prairie Metis Settlement can safely return starting on Thursday

B.C. files second legal challenge against Alberta over turn-off-taps law

B.C. government filed a second lawsuit against Alberta on June 14

Tax credits, penalizing big polluters, key to Conservative climate plan

Canada’s commitment is to cut emissions to 70 per cent of what they were in 2005 before 2030

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

Calgary man facing charges after B.C. police service dog aids in arrest

Heavy police presence results in PSD Jagger finding suspect

Most Read