4/6/2019 Canadian LNG Projects | Natural Resources Canada

Canadian LNG Projects

Context
Much has changed in the North American liquefied natural gas (LNG) market in the past decade.
Throughout the early to mid-2000’s, concerns over decreasing conventional supplies of domestic
natural gas led to bullish predictions about future LNG demand in North America, resulting in an
investment boom to build new LNG import facilities.
Around 2008, dramatic changes in the North American natural gas market began, driven by surging
U.S. unconventional natural gas production (mostly from shale gas). This changed the outlook for
LNG imports. Natural gas production increased, North American prices fell significantly, and the
expected need for imported LNG collapsed. In fact, LNG exports began to be contemplated.
As unconventional gas production increases, the U.S. is becoming increasingly self-sufficient with
respect to natural gas. Pipeline exports from Canada to the U.S. are decreasing. With ample
unconventional resources, industry has shifted its focus from importing LNG into North America to
exporting LNG from North America. The export of LNG could facilitate Canadian natural gas
production growth and result in significant investment, jobs and economic growth.

Canadian LNG Projects

Eighteen LNG export facilities have been proposed in Canada – 13 in British Columbia, 2 in Quebec
and 3 in Nova Scotia – with a total proposed export capacity of 216 Million tons per annum (mtpa) of
LNG (approximately 29 Billion cubic feet per day (Bcf/d) of natural gas). Since 2011, 24 LNG
projects have been issued long-term export licenses. Canada’s only operational LNG terminal (an
import terminal) is Canaport LNG’s regasification import terminal located in Saint John, New
Brunswick.
According to a Conference Board of Canada study, which estimates the potential contributions LNG
exports may make to the Canadian economy, an LNG export industry equivalent to 30 mtpa in
British Columbia could add roughly $7.4 billion to Canada’s annual economy over the next 30 years,
and raise national employment by an annual average of 65,000 jobs. The Government of Canada is
working closely with British Columbia, other provinces and industry partners to create conditions to
support the development of an LNG industry in Canada.

EXISTING IMPORT TERMINAL

Project Location

Canaport LNG Saint John, New Brunswick

Canadian LNG Import and Proposed Export Facilities

Project Export Export Volume Million Tons per Annum Cost of the
Licence (Mtpa) - Billion Cubic Feet per day (Bcf/d) Project
($Billion)

13 West Coast (British Columbia) Export Terminals

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Kitimat LNG 20 10 Mtpa - 1.3 Bcf/d $15

Years

LNG Canada 40 26 Mtpa – 3.5 Bcf/d $25-$40

Years

Cedar LNG Project 25 6.4 Mtpa – 0.8 Bcf/d

Years

Orca LNG 25 24 Mtpa – 3.2 Bcf/d

Years

New Times Energy 25 12 Mtpa – 1.6 Bcf/d

Years

Kitsault Energy 20 20 Mtpa – 2.7 Bcf/d

Project Years

Stewart LNG 25 30 Mtpa – 4.0 Bcf/d

Export Project Years

Triton LNG (On 25 2.3 Mtpa – 0.3 Bcf/d

Hold) Years

Woodfibre LNG 25 2.1 Mtpa – 0.3 Bcf/d $1.6

Years

WesPac LNG 25 3 Mtpa – 0.6 Bcf/d

Marine Terminal Years

Discovery LNG 25 20 Mtpa – 2.6 Bcf/d

Years

Steelhead LNG: 25 30 Mtpa – 4.3 Bcf/d $30

Kwispaa LNG Years

Watson Island

5 East Coast Export Terminals

Goldboro LNG 20 10 Mtpa – 1.4 Bcf/d $8.3

(Nova Scotia) Years

Bear Head LNG 25 12 Mtpa – 1.6 Bcf/d $2-$8

(Nova Scotia) Years

A C LNG 25 15 Mtpa – 2.1 Bcf/d $3

(Nova Scotia) Years

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Energie 25 11 Mtpa – 1.6 Bcf/d $7

Saguenay(Quebec) Years

Stolt 25 0.5 Mtpa – 0.7 Bcf/d $0.6

LNGaz(Quebec) Years

Total 216 Mtpa – 29 Bcf/d

Canadian Government Position

The Minister of Natural Resources Canada has stated “The Canadian Government is taking steps to
grow the Canadian economy, create good jobs and opportunities for Canadians, while protecting our
environment for future generations. As the Prime Minister has emphasized, in the 21st century we
must get our resources to market sustainably and responsibly. For all natural resource projects, the
government is working closely with provinces and territories, Indigenous peoples, and other
interested parties to ensure that the highest standards of public and environmental safety are being
met, while creating new export opportunities for Canada’s natural resources.”

Regulations and Permitting

While the ongoing operation of LNG terminals generally falls under provincial regulation, most LNG
terminal proposals require both federal and provincial environmental assessments and permits.
Most of the proposed LNG facilities require new pipelines or the expansion of existing pipelines.
Intra-provincial pipelines are provincially regulated, while pipelines that cross a provincial or
international border are federally regulated. For more information on pipelines, please
see Frequently Asked Questions (FAQs) Concerning Federally-Regulated Petroleum Pipelines in
Canada.
A permit from the National Energy Board (NEB), Canada’s federal energy regulator, is required to
export LNG from Canada. The NEB reviews export licence applications to ensure that the proposed
volume of gas to be exported is surplus to Canadian requirements. Since 2011, 24 LNG projects
have been issued long-term export licenses ranging between 20-40 years. More information on
export licences is available on the NEB's website.

LNG Facilities and Safety Regulations

LNG facilities are classified as industrial sites and must meet all federal, provincial and municipal
standards, codes and safety regulations. These regulations are constantly updated to ensure that
the health, safety and security of the environment and Canadian public are protected. The Canadian
Standards Association (CSA) has a specific standard for LNG production, storage and handling
(CSA Standard CAN/CSA Z276-01). This standard establishes essential requirements for the
design, installation and safe operation of LNG facilities.

Useful Links
These websites provide useful background information on LNG and LNG regulatory processes in
Canada.
Generation Energy
National Energy Board
Canadian Environmental Assessment Agency

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Major Projects Management Office

BC Oil and Gas Commission
LNG Projects in British Columbia
BC LNG Alliance
BC LNG First Nations Alliance

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