Resource World Magazine

54 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 4 high hopes for Prince rupert lnG project by Peter Caulfield L NG producer and shipping company BG Group [BG-LON] is proposing to develop a liquefied natural gas (LNG) facility on Ridley Island near Prince Rupert, a deep-water port on the north coast of British Columbia. The Prince Rupert LNG Project involves the construction of an LNG plant and associated port facilities to export natural gas to Asia-Pacific markets. If the project goes ahead a decision is expected between now and 2016. It will be developed in two phases, with expected completion in 2019. According to BG Group, the project might eventually have a production capacity of up to 21 million tonnes, nearly 29 billion cubic metres, of LNG per year. The LNG facility will liquefy natural gas and transfer it to ships for transportation to markets in Asia. The project site covers approximately 255 acres on the southwestern part of Ridley Island. BG Canada vice president, Madeline Whitaker, says the Prince Rupert LNG export facility is part of a plan for a multi-chain project. "In addition to the proposed LNG plant on Ridley Island, the project includes natural gas production in northeastern BC and a pipeline that links upstream production to the plant on the coast," Whitaker said. In its initial phase, the LNG plant will consist of two LNG processing units (known as trains), two LNG storage tanks, a jetty with two ship-loading berths and a LNG shipping terminal. Each LNG train would have seven million tonnes per annum (mtpa) of capacity for a facility total of 14 mtpa. Whitaker says the proposed project could create considerable employment during the construction and operations phases. "Construction should take around five years," she said. "As many as 3,000 jobs could be created during construction, and an additional 400 to 600 full-time per- manent positions, plus possible spin-off jobs and economic opportunities." The LNG facility will be supplied by natural gas produced in northeast BC and the gas will be connected to the coast via an underground and underwater natural gas pipeline. BG Group has partnered with Spectra Energy [SE-NYSE] on a proposal to build an 850 kilometre-long (525 miles) pipe- line called the Westcoast Connector Gas Transmission Project. The project will comprise up to two pipelines driven by up to five compressor stations. It will begin in the Cypress area of northeastern BC, about 110 km northwest of Fort St. John, and terminate at Ridey Island. Total capital cost of the project is an estimated $6-$8 billion. "We're excited about the opportunity on the north coast of BC, and we're work- ing to build long-lasting relationships with First Nations and local communities," said Whitaker. "We believe that, done respon- sibly, LNG development will be good for the people of BC." One of the potential beneficiaries of the project is the Port of Prince Rupert. Port Authority spokesman, Kris Schumacher, says the port has a deep, ice-free harbor, and a short, deep and wide access to the commercial shipping lanes of the Pacific Ocean. "Prince Rupert is also North America's closest port to markets in Japan, China and Korea," Schumacher said. "That gives LNG carriers shorter and faster access to their customers, as well as proximity to BC and Alberta natural gas reserves. Together, they make for an extremely effective supply chain route." Another organization that stands to benefit is the Lax Kw'Alaams Band. Band administrator, Wayne Drury, says the Lax Kw'Alaams Business Development Group has developed a number of joint ventures that are focused on contracting oppor- tunities from the pipeline and export facility. "Some of the joint ventures are camp services, construction, engineering, environmental remediation, flight services, marine services and office furnishing," Drury said. "We want to capture con- tracting opportunities from the venture and make sure the LNG projects are for the northwest, not just in the northwest. There will be lots of work if the project goes ahead and we want to be ready for it." The Lax Kw'Alaams Band's traditional territory lies about 30 km east of Prince

• Cover