TransCanada connects to nation's LNG interests

CALGARY, Alberta, May 6 (UPI) -- The last permits necessary to build a natural gas pipeline project servicing the western port of Kitimat in British Columbia has been secured, TransCanada said.

The provincial government in British Columbia signed off on the last of the permits needed for the Coastal GasLink pipeline project, slated to connect to a proposed liquefied natural gas export facility on the western Canadian coast.

"This is a significant regulatory milestone for our project, which is a key component of TransCanada's growth plan that includes more than $10 billion in proposed natural gas pipeline projects which support the emerging liquefied natural gas industry on the British Columbia coast," TransCanada President and CEO Russ Girling said in a statement.

The National Energy Board in January 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 from Kitimat. It was one of the first licenses of its kind approved by the NEB.

Export licenses are approved using a national interest determination based on energy needs.

Canada relies heavily on the North American market for exports. With Asian economic growth outpacing that of North America, the Canadian government has been keen to tap into new foreign markets. Canada's energy plans have frustrated First Nations that are concerned the development of oil, gas and associated infrastructure may harm the ecosystems upon which they depend.

Girling said the permits awarded by the government in British Columbia show the company found the right balance between conservation and energy development.

A final decision on Kitimat LNG facilities is expected later this year. If the project proceeds, TransCanada said it would start building the Coastal GasLink pipeline in 2017.