CALGARY, Jan. 29, 2015 /CNW/ – The National Energy Board (NEB or Board) approved the application of Woodside Energy Holdings Pty Ltd. (Woodside Energy) for a 25 year natural gas export licence with a maximum term quantity of 807 billion cubic metres1. The export point would be in the vicinity of Grassy Point, north of Prince Rupert, British Columbia at the outlet of the loading arm of a proposed natural gas liquefaction terminal. The issuance of this licence is subject to the approval of the Governor in Council.
When evaluating natural gas and LNG export licence applications, the Board considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada. When doing so, we recognize that Canadian natural gas requirements are met in the context of free trade within a North American energy market.
The Board acknowledges that, when taken together, the LNG export licence applications submitted to the Board 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 numerous development and construction challenges. Consistent with the evidence submitted in Woodside Energy’s application, the Board believes that not all LNG export licences issued by the Board will be used or used to their full allowance. Therefore, the Board evaluates each application based on its own merit.
We have determined that the quantity of gas proposed to be exported by Woodside Energy is surplus to Canadian needs. The Board is satisfied that the gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, the natural gas exports proposed in this Application, and a plausible potential increase in demand.
The National Energy Board is an independent federal regulator of several parts of Canada’s energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.
1 Applied-for term quantity including 15% tolerance.
SOURCE National Energy Board
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