LNG Canada approval stokes dreams for future LNG development in Northwest, with Prince Rupert still a potential location

The Major Projects webmap of just a few years ago marked a number
of Northwest locations for potential LNG terminal development,
with Monday's LNG Canada announcement, some energy observers
suggest that a rebirth for development may be on the horizon
(Map from BC Oil and Gas commission)

Yesterday's announcement of the Green light for a 40 Billion dollar investment in Kitimat through the LNG Canada terminal and pipeline project, has seemingly renewed hopes in Canada's energy sector that the province of British Columbia will see a number of other LNG projects come to fruition in the years to come.

And while many from this LNG 101 update of a few years ago may be long gone, many observers suggest that with the LNG Canada announcement, the push towards future development may be back on, with communities around British Columbia looking to reap the economic benefits that Kitimat hopes to realize over the next decade.

Bloomberg Canada made note of the renewed optimism on Tuesday, and as part of their look at the road ahead, the business portal took note of some thoughts from Prince Rupert Mayor Lee Brain from the summer when he reviewed the options available for investors on the North Coast.

From the Bloomberg article, among the suggested sites for such a development were the city owned lot on Tuck Inlet that once was to be the home for the WCC LNG Project, the tone of the Bloomberg article suggesting that the Exxon plans may no longer be in motion.

Another location that was noted as potential development site was Ridley Island, where room for another industrial project is available.

Would be LNG companies however will do some due diligence and no doubt consult with Petronas, the proponent of the close but not delivered Pacific Northwest LNG terminal, as well as the Chinese Oil giant CNOOC, who abandoned their own plans for LNG development on Digby Island last year.

Both companies could provide a lay of the land for energy companies looking to do business on the North Coast and make note of the discussions with communities in the region at the time.

Any LNG proponent looking to locate in Prince Rupert, will most likely research the CEAA filings made by the City of Prince Rupert for the Aurora and Pacific NorthWest LNG projects.

The environmental assessment process was one which the City of Prince Rupert took much interest in, filing lengthy contributions for both projects, highlighting their concerns related to development and what they hoped to receive from any successful proponent as far as benefits to the community.

March 15, 2017 -- City of Prince Rupert submission among many included in comment process for Aurora LNG
April 4, 2016 -- City of Prince Rupert CEAA submission on Pacific NorthWest LNG now available on agency website

At Monday's City Council forum, all eight of the candidates declared differing levels of support towards the LNG industry for Prince Rupert, some more cautious than others, all however preaching the theme of support, only if any proposed development is in the right place and with the right conditions.

Of the four incumbents on the panel that were on Council during these last few years of past LNG speculation, none really went into much detail on Monday towards how they had approached those two applications that were in the line up during their time on Council.

Something which left a few gaps on background when it comes to their declaration of support towards a return for the industry to Prince Rupert.

Grassy Point near Lax Kw'alaams
is one spot that has been identified
as a potential LNG terminal location

One other interested observer in the renewed prospects for further LNG terminal development maybe Lax Kw'alaams, which at one time was on the radar for Australia's Woodside energy, which had proposed an LNG Terminal at Grassy Point .

That land is still vacant and as Eagle Spirit Energy's Calvin Helin revealed in recent months,  a push continues towards developing an energy corridor from Alberta to the North Coast with terminal facilities not far from the First Nation community at the north end of Tuck Inlet.

Now that the LNG picture is heating up once again, that Lax Kw'alaams option may find the most traction of all when things do begin to percolate.

Fitting in as it does with both Provincial and Federal themes on Indigenous engagement and a desire towards as Premier Horgan put it yesterday: "balancing our economic, environmental and reconciliation priorities"

Bloomberg was the first to take note of the new enthusiasm for LNG in Canada in the wake of the Kitimat announcement of Tuesday, some others can be reviewed below:


Looming Large: Shell's LNG Canada seen as tip of mega project iceberg
'First of many': $40B LNG Canada signals revival of mega projects
$40B LNG facility is the light at the end of a long tunnel for Canada's natural gas sector
What LNG means for gas sector


A review of the past proposed projects for the Prince Rupert area can be found from our archive page here.

Cross posted from the North Coast Review