CALGARY, A.B. — The National Energy Board has approved the application of LNG Canada for a 40 year natural gas export licence with a maximum term quantity of 1494 billion cubic metres. The Governor in Council still has to approve the licence’s issue.
LNG Canada has been approved by NEB for the first 40-year natural gas export licence since the National Energy Board Act was amended in June 2015. Previously, the maximum length a term could have was 25 years.
When evaluating natural gas and LNG export licence applications, the Board considers if the quantity of natural gas proposed to be exported is more than Canada requires, taking into account trends in the discovery of gas in Canada.
In this case, the NEB has determined that the quantity of natural gas proposed to be exported by LNG Canada is surplus to Canadian needs.
The release by the NEB states:
“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. This demand would include the LNG exports proposed by LNG Canada as well as a plausible potential increase in Canadian demand.”
The approved export point is the outlet of the natural gas liquefaction terminal, to be located near Kitimat.