Projected number of shipments: five to seven per month
Export capacity: initially 5 mmtpa
Provincial and federal environmental approvals received
Projected date of operation: 2015
Read more about KMLNG here.
PACIFIC TRAILS PIPELINE
This makes the Douglas Channel the optimum location for Canadian gas suppliers wanting to provide liquified natural gas (LNG) to these important and growing Asian markets.
Work began in 2011 on the Kitimat LNG plant and terminal owned by Apache Resources Canada and EOG Resources Canada. It is being built on Haisla reserve land at Bish Cove, about 10 kms from Kitamaat Village on the west side of Douglas Channel.
KM LNG received its export permit from the National Energy Board in October, 2011.
The plant represents a capital investment of about $4 billion, with a final investment decision due in the first half of 2012.
Gas will be brought to the site from the Spectra transmission system at Summit Lake, B.C., about 463 kms from Bish Cove, on the Pacific Trails Pipeline (PTP), a joint venture of Apache Canada, EOG Resources Canada, and Encana. PTP should be feeding 1,000 MMcf/d of natural gas to the operating KM LNG plant in 2015.
The proposed project consists of a looping of the existing PNG pipeline between Kitimat and Summit Lake (near Prince George) to increase capacity and operate a bi-directional pipeline system. This project is directly tied to the proposed Kitimat LNG terminal.
Pacific Trail Pipelines, a 50/50 partnership between Galveston LNG Inc. and Pacific Northern Gas Ltd. (PNG), is developing the natural gas transmission pipeline system from Summit Lake to Kitimat, British Columbia to serve Kitimat LNG Inc.’s export terminal near Kitimat, B.C.
Kitimat LNG Terminal is the only proposed LNG export terminal on the west coast of North America.
One of the Terminal’s competitive advantages is the ability to access the world-class natural gas supplies in the Western Canadian Sedimentary Basin. The close proximity to the large Asian LNG markets gives the Kitimat LNG Terminal a competitive advantage over liquefaction terminals in the Atlantic basin. Pacific Trail Pipelines, a $1-billion, 463-kilometre pipeline, will provide the Terminal with a direct connection to the Spectra Energy Transmission pipeline system and excellent access to natural gas supplies in British Columbia and Alberta.
Read more about the Pacific Trail Pipeline here.
On February 3, 2012 the National Energy Board granted approval of a 20 year licence for the export of liquefied natural gas from a proposed terminal at Kitimat, BC. With a final investment decision due early in 2012, BC LNG should see its first shipment of LNG on its way to Asia in 2014.
This $400-600 million project will bring gas from independent producers tapping into BC and Alberta gas fields, liquefy it at a barge-based plant, and load it on to LNG carriers for sale to several contracted Asian customers.
Kitimat LNG Inc. is proposing to construct and operate a liquefied natural gas (LNG) export, liquefaction and LNG send-out terminal at Bish Cove near the Port of Kitimat, B.C. Kitimat LNG Terminal will include marine on-loading, LNG storage, natural gas delivery, liquefaction and LNG send-out facilities. The terminal will take delivery of gas via a pipeline lateral, approximately 15 kilometres long, from the Pacific Trail Pipelines, which will be connected to the existing Spectra Energy’s Westcoast Pipeline system. The proximity of the terminal to the existing natural gas transmission infrastructure is one of the advantages of this project, and ensures supply has easy access to the Kitimat Terminal.
Shell has secured an initial site in Haisla territory and has started discussions with HBO, governments, and potential customers on a $10 billion-plus LNG capability.
Early in 2010, RTA and the Haisla signed a legacy agreement that assigned certain benefits (jobs, contracting opportunities, land acquisition opportunities) to the Nation.
Currently about X Haisla are working at the RTA modernization which is scheduled for completion in 2013.
Since 1997, Rio Tinto Alcan has spent about $25 million on feasibility studies to retrofit, modernize or expand the Kitimat Works smelter. On August 14 2006, Rio Tinto Alcan announced that it will proceed with a (US) $2.5 billion investment to fully modernize the Kitimat Works smelter, introducing the latest evolution in Rio Tinto Alcan’s AP (Aluminium Pechiney) technology.
The implementation of the project was subject to the following conditions, which have now been met:
1) The BCUC decision of electricity purchase agreement with BC Hydro;
2) Confirmation for environmental permitting
On May 3, 2007, Rio Tinto Alcan and the Canadian AutoWorkers (CAW), Local 2301 reached agreement to extend the term of the collective labour agreement (CLA) to 2012. Sixty-one per cent of Rio Tinto Alcan Primary Metal British Columbia employees voted to ratify the new CLA.
Due to the current global economic conditions the project has been ramped down to a slower spend rate, but RTA is fully committed to continuing to work towards final board of director’s approval. Once the modernized Kitimat Works smelter comes on stream, it will increase production by more than 40 per cent, from the rated capacity of 275,000 tonnes per year to about 400,000 tonnes per year, making Kitimat a world class aluminum producing facility for the next 35+ years and beyond.
In addition, the modernization will secure about 1,000 stable and technically enriched jobs in BC’s northwest region for the long term and roughly double this number during the construction phase
More about the Alcan Modernization here.