LNG Canada work out power deal with BC Hydro

The deal will cover a portion of the proposed LNG Canada plant in Kitimat.

LNG Canada, the proponent behind a proposed liquefied natural gas facility in Kitimat, has signed a power agreement with BC Hydro.

“This agreement is an important step forward towards getting the LNG industry up and running,” said Premier Christy Clark in a news release. “It’s about providing certainty for one of British Columbia’s largest and most promising proposals.”

This is the first power agreement signed in British Columbia with an LNG proponent. The agreement covers a portion of the electricity supply that will be required to power the commissioning and operation of LNG Canada’s proposed facility – all auxiliary power needs. LNG Canada will use natural gas turbines to drive the refrigerant compressors to chill natural gas into liquid form.

“We heard very clearly from First Nations, the local community, and the provincial government how important it is that LNG Canada considers environmental factors when planning for the proposed project,” said Andy Calitz, CEO of LNG Canada. “The decision to power our facility with renewable electricity in combination with highly efficient natural gas turbines reflects our commitment to listen to, and act on feedback from our stakeholders, when possible.”

Haisla Chief Councillor also said through a media release that this agreement is good news and it “adds more certainty to the context around the project.”

The agreement also details the development, operation and maintenance of transmission infrastructure required to connect the proposed facility to BC Hydro’ grid. LNG Canada will fund the improvement of the infrastructure.