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Canada awards license for LNG exports to Asia

Quicksilver subsidiary gets nod for facility in British Columbia.

By Daniel J. Graeber
Canadian subsidiary of Quicksilver Resources gets federal approval to send gas to Asian market from facility in British Columbia. Photo courtesy of Quicksilver Resources.
Canadian subsidiary of Quicksilver Resources gets federal approval to send gas to Asian market from facility in British Columbia. Photo courtesy of Quicksilver Resources.

CALGARY, Alberta, July 1 (UPI) -- A Canadian energy regulator said it approved an export license that allows Quicksilver Resources to send liquefied natural gas to Pacific Rim markets in Asia.

Quicksilver Resources received a 25-year export license from the National Energy Board to send LNG from a facility in British Columbia.

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"The NEB has determined that the quantity of gas proposed to be exported by Quicksilver is surplus to Canadian needs," the regulator said. "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."

Quicksilver in July 2014 applied for a license to export as much as 20 million tons of LNG per year from its Discovery project in British Columbia. Exports could start by 2021, the company said. The facility will have loading facilities and be operated by a partnership between Quicksilver and a third party yet to be determined.

Provincial Minister of Natural Gas Development Rich Coleman said the government has created the necessary environment to put the LNG export industry in a position of strength to become the largest source of private-sector investments.

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A report from Canada's National Energy Board said conventional natural gas exports have declined in part in response to the growing production of gas from shale deposits in the United States. NEB said it's received more than 20 LNG export licenses since 2014, though export terminals have yet to break ground.

Canadian Prime Minister Stephen Harper announced tax breaks to support the LNG business during a February tour of Asia.

Quicksilver's parent company in March filed for Chapter 11 bankruptcy. Chief Executive Officer Glenn Darden said in a statement at the time its marketing process "has not produced viable options" for capital.

The company's Canadian subsidiary, which applied for the export license, was not included in the bankruptcy proceedings.

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