Haisla-owned LNG project seeking export licence from National Energy Board

Cedar LNG will use floating liquefaction facilities on the Douglas Channel.

A newly formed Haisla-owned company is seeking an export permit as they prepare for liquefied natural gas (LNG) exports from the Douglas Channel at Kitimat.

Cedar LNG Export Development Inc. has submitted for three separate export licences.

Company CEO Dave LaVallie said that each of the floating LNG facilities they hope to moor in the Douglas Channel can receive up to 400 million cubic feet per day of gas, and with up to perhaps five jetties serving  the liquefaction vessels, he said the flexibility of the project lends itself to splitting up their operation under the three export permits.

The project isn’t being run as a traditional LNG company compared to larger players, he said.

“We are just the midstream piece. It will be the customers who line up where they get the gas,” he said. “We simply charge them a toll for turning that gas from a gaseous state to a liquid state.”

The company also won’t build their own dedicated pipeline but will instead use capacity on a future pipeline but LaVallie didn’t name names when it came to who they’d use.

That said, he did confirm it wouldn’t be on Pacific Northern Gas’ line, only because there’s no spare capacity on that line to buy.

He said they are in advanced stages with potential customers but slow progress from the provincial government is making securing contracts difficult.

“We are in advanced stage of negotiations with customers but until such time that B.C. has confirmed its tax regime and its regulatory regime with respect to its emissions, standards and other things, folks aren’t prepared to sign up to these projects,” he said.

“It’s a problem for every one of these projects.”

He said he anticipates that between direct and indirect jobs, over 100 people might be employed from the project in operation.

The submission to the National Energy Board says that this project will eventually have at least one more industry partner in some phase of the construction, ownership or operation.

The location of Cedar LNG wasn’t specified but would likely be built somewhere in land that effectively surrounds Bish Cove, where the Kitimat LNG project is proposed to go as well.

Under the best case scenario he sees the Cedar LNG project proceeding in 2018 but is realistic in that it could take longer.

“Our hopes are it will be as early as 2018, but expecting more likely 2019,” he said.