• 02 Feb 2015

The Canadian National Energy Board (NEB) has approved Woodside Energy’s application for a 25-year natural gas export licence, with a maximum term quantity of 807 billion m3.

Woodside intends to export LNG from Grassy Point, north of Prince Rupert, British Columbia at the outlet of the loading arm of a proposed natural gas liquefaction terminal. The licence is still subject to the approval of the Governor in Council.

Approval process

When evaluating natural gas and LNG export licence applications, the NEB considers if the quantity of gas to be exported is surplus to Canadian requirements.

The NEB acknowledges that combined, the LNG export licence applications submitted to date, represent a significant volume of LNG exports from Canada. However, all of these LNG ventures are competing for a limited global market and face a number of development and construction challenges.

Consistent with the evidence submitted in Woodside Energy’s application, the NEB believes that not all LNG export licences issued will be used, or used to their full allowance. As such, each application is evaluated individually, based on its own merit.

Outcome?

The NEB has determined that the quantity of gas to be exported by Woodside Energy is surplus to Canadian needs.

Source: LNG Industry