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Canada builds on LNG export potential

Regulator gives nod to second export application this month.

By Daniel J. Graeber
Canadian energy regulator signs off on applications for LNG facilities in British Columbia, with three cleared in the last two months. Photo by Stephen Shaver/UPI
Canadian energy regulator signs off on applications for LNG facilities in British Columbia, with three cleared in the last two months. Photo by Stephen Shaver/UPI | License Photo

CALGARY, Alberta, July 28 (UPI) -- Canada builds on its natural gas export potential with a decision in favor of a liquefied natural gas project in British Columbia, a regulator said.

The National Energy Board gave its consent to an application submitted last year by Orca LNG Ltd. for a 25-year natural gas export license from a facility in British Columbia. Beginning in 2019, Orca will start exporting a maximum of 24 million tons of LNG per year, making it among the largest facilities of its kind in the region.

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The NEB said it weighs export licenses against the public's interest.

"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 in its approval notice.

Last week, the NEB said technological improvements in drilling into natural gas basins in Western Canada means initial production rates should increase through 2017.

Approval for Orca is the second issued this month by the NEB. Quicksilver Resources in early July received a 25-year export license from the National Energy Board to send LNG from a facility in British Columbia.

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In June, Pacific NorthWest LNG, a partnership between TransCanada and Malaysia's state-owned Petronas, said it was resolved to move forward with a final investment decision for a $9.3 billion liquefied natural gas terminal slated for ports near Prince Rupert, British Columbia.

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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