CPABC Industry Update Summer 2014 - Page 17

The Impact of LNG Development on Ports and Infrastructure Increasing infrastructure capacity to effectively transport British Columbia’s shipments of LNG is a priority for both private businesses and port authorities. BC’s three major ports, who all play a significant role in getting this resource to market, will be impacted, but the two ports that will be most affected are the Port of Kitimat and the Port of Prince Rupert. Port of Kitimat1 The Port of Kitimat, BC’s third largest port for international trade, is one of the few private ports in North America. The port is currently attracting substantial investment for energy-related projects. It is also one of the few facilities where private container terminal development is possible. As a private port, all facilities are built, owned, and operated by private enterprise. The following major projects include the construction of marine terminal facilities. BC LNG will require new marine terminals; LNG Canada will modify an existing one (formerly used by Eurocan Pulp and Paper): Douglas Channel Energy Partnership (BC LNG) A barge-based liquefaction plant is proposed to be located on the west side of Douglas Channel, south of Moon Bay. This small-scale project will initially use existing capacity in the Pacific Northern Gas pipeline and produce up to 900,000 tonnes of LNG per year. In February 2012, the National Energy Board awarded a permit to export up to 1.8 million metric tonnes of LNG annually over 20 years, equivalent to 250 million cubic feet per day (MMcf/d) of natural gas. The Haisla Nation, LNG Partners, Golar LNG, and an unnamed Asian firm are the project partners. LNG Canada – $12 billion In May 2012, Shell Canada formally announced the development of a proposed two billion cubic feet per day liquefied natural gas export facility. The project consists of the construction and operation of natural gas treatment facilities, liquefaction facilities, storage facilities, marine terminal facilities, an interconnecting cryogenic transfer pipeline, and supporting infrastructure. LNG Canada will initially consist of two trains, each with t