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The National Energy Board of Canada (NEB) on Feb. 2 approved an application by BC LNG Export Co-operative LLC (BC LNG) for a license to export liquefied natural gas (LNG) from Kitimat, British Columbia, primarily to Asian markets.
The export license authorizes BC LNG to export 36 million metric tons (MMmt/y) of LNG, which is equivalent to approximately 47.9 billion cubic meters of natural gas, over a 20-year period. The maximum annual quantity allowed for export will be 1.8 MMmt/y of LNG.
A cooperative comprised of natural gas producers, marketers and LNG buyers is a central feature of BC LNG’s export proposal, where members of the co-operative will submit bids to provide natural gas to be liquefied or purchase LNG. A committee will review the bids and choose those that will yield the greatest margin to the cooperative.
There currently are 13 members in the cooperative. BC LNG’s export model permits smaller natural gas market participants in Canada to play a part in exporting LNG.
In approving BC LNG’s application, NEB satisfied itself that the quantity of gas to be exported is in excess of the requirements to meet the foreseeable Canadian demand.