"Major Progress and Upcoming Plans for Liquefied Natural Gas (LNG) Projects in British Columbia in 2022"

Over the last twelve months, there were some remarkable advancements in liquefied natural gas (LNG) projects in the province. Though it is a positive sign, these developments also highlighted the requirement for substantial energy and transmission infrastructure to back up the proposed electrification of liquefaction methods.

LNG Canada, a collaboration between Shell Canada, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS announced in September 2022 that the completion of Phase 1 of its $40 billion project in Kitimat, BC is now 70% complete, while the Coastal Gaslink (CGL) pipeline is 75% complete. It is anticipated that outgoing LNG shipments will commence in two to three years. As the first major LNG export facility to make a final investment decision in British Columbia, the terminal is located in the traditional territory of the Haisla Nation at the head of the Douglas Channel. Natural gas-powered turbines will be used in the liquefaction process for Phase 1 of the terminal.

Phase 2 of the project hasn't been given the green light yet. If approved, it could double the facility's annual exporting capacity from 14 million to 28 million tonnes. However, the CleanBC plan doesn't account for Phase 2 and there may be restrictions on emissions. One option to meet emissions criteria is to switch to electric power for the liquefaction process, but that could lead to high operation expenses. Moreover, there are worries about the ability of the BC Hydro system to support the plant in Kitimat. To use electricity for Phase 2, the construction of new transmission infrastructure would be necessary.

The Cedar LNG project is proposed to be built next to LNG Canada in Kitimat. The Haisla Nation and Pembina Pipeline Corporation are collaborating to develop this project, which is expected to cost around $3 billion. An environmental assessment is currently underway after the public comment period ended this year. This project has potential to be the largest Indigenous Nation-owned infrastructure project in the country. Once operational, Cedar LNG is expected to produce about 3 million tonnes of LNG yearly. To reduce its carbon footprint, the facility will be connected to the existing BC Hydro transmission system. This connection raises concerns about shared transmission lines between Cedar LNG and LNG Canada, and the impact on BC Hydro's system. The plan is to power Cedar LNG with electricity, which may help alleviate some of these issues.

Woodfibre LNG made an announcement in April 2022 that they have given the green light to their primary contractor, McDermott International, to start the $US5.1-billion project. The instruction is for McDermott to commence the necessary work in order to begin major construction of the Woodfibre LNG project in 2023. It is estimated that the project will be substantially completed by 2027.

The Woodfibre LNG plan consists of an export depot that will ship out 2.1 million tonnes of the liquefied natural gas annually. The project will be based in Squamish, British Columbia and will operate using environmentally-friendly hydroelectric power, making it the most sustainable LNG facility globally. Furthermore, the Squamish Nation, along with the Canadian and British Columbian governments, will oversee the Woodfibre LNG development. Remarkably, the Squamish Nation will act as a complete project regulator - the first time an Indigenous group has been given this authority without a treaty in Canada's industrial history.

Enbridge Inc. recently announced in July 2022 that it has agreed with Pacific Energy Corp. Ltd. to acquire a 30% share in the Woodfibre LNG project, marking their first investment in an LNG terminal. To meet the increasing regional demand, including the Woodfibre LNG project, Enbridge has also approved a $3.6 billion development of the T-South segment of its BC natural gas pipeline. They are planning to submit a regulatory application for the expansion (called the Southern Mainline Expansion Project) in 2024, which will begin operations in 2028.

The Tilbury LNG site is being expanded by FortisBC in Delta, BC. FortisBC is planning to finish Phase 1 of the expansion to its liquefaction capacity soon, which could be running by 2025. Also, the Tilbury Jetty Limited Partnership has asked for an environmental assessment for a marine jetty beside the Tilbury LNG facility. Furthermore, the plan for Phase 2 of the Tilbury LNG expansion has been presented to the BC Environmental Assessment Office and the Impact Assessment Agency of Canada. Phase 2 involves building a new tank with 142,400 cubic metres capacity and a new liquefaction capacity of 2.5 million tonnes per year. If allowed, work could start in 2023 and completion expected by 2028.

The Nisga'a Nation, Rockies LNG Limited Partnership, and Western LNG LLC have come together to work on a project known as the Ksi Lisims LNG Natural Gas Liquefaction and Marine Terminal, located at Wil Milit in the northern part of Pearse Island, British Columbia. This project aims to produce 12 million tonnes of LNG yearly. Right now, it's still in the early stages of the BC environmental assessment, with a detailed project description submitted in April. To achieve this goal, two different pipelines are being considered, namely, Enbridge's Westcoast Connector Gas Transmission Pipeline and TransCanada's Prince Rupert Gas Transmission Pipeline. Either of these pipelines could help transport gas resources found in Northeastern BC to the location of the project.

This blog is a part of our Power Perspectives 2023 issue. Get the complete edition downloaded from here.