CALGARY, Alberta, Jan. 8 (UPI) -- The federal Canadian government said it approved a 40-year export license for liquefied natural gas from a facility set for the shores of British Columbia.
The National Energy Board gave its consent to LNG Canada Development Inc. for an export license with a maximum capacity of 52.7 trillion cubic feet of natural gas.
The license is the first approved by the NEB for a 40-year term since regulations were amended in June. The maximum term limit prior to the amendments was 25 years.
Export licenses are approved using a national interest determination based on energy needs.
"The NEB is satisfied that Canada's gas resource base, and the overall gas resource base in North America, is large and can accommodate reasonably foreseeable Canadian demand," it said.
The company received the provincial authority necessary for the construction and operation of the facility to be located at the port city of Kitimat in British Columbia earlier this week.
LNG Canada said it was the first company to receive such a license, adding it was among the first to work in collaboration with aboriginal communities concerned about the perceived environmental issues surrounding coastal energy development.
"Safety is our first priority," CEO Andy Calitz said. "Safety as it relates to people and the environment is embedded into the design and planning of our proposed facility, and will carry into the construction and operation phases of our project."
Canada relies heavily on the North American market for exports. With Asian economic growth outpacing that of North America, the government is keen on tapping into new foreign markets.