LNG Companies announce milestones for projects

TransCanada announced it has received the final provincial permits needed for construction of Coastal GasLink pipeline

Two announcements move one planned liquefied natural gas (LNG) project in Kitimat closer to a quicker construction start should it ever make a decision to proceed.

TransCanada announced May 5 it has received the final provincial permits needed for construction of its Coastal GasLink natural gas pipeline that would feed the planned LNG Canada plant while LNG Canada itself said it has chosen the construction partnership of Bird-Civeo to build a 4,500-person work camp.

With the final decision from the LNG Canada partners expected in late 2016, TransCanada says it is ready to begin work on the Coastal GasLink pipeline in 2017.

LNG Canada is prepared to have its contractors start building accommodation for its workers at a facility called the Cedar Valley Lodge as soon as a final investment decision is reached.

The work camp will be built immediately adjacent to LNG Canada’s plant located in Kitimat at the former Methanex site so that workers will be closer to the job site.

Though construction of the Cedar Valley Lodge will not go ahead unless LNG Canada choses to build the coastal liquefied natural gas facility, Bird-Civeo says it will prepare engineering and planning work in the interim.

The lodge is expected to be 1.2 million square feet in size with residences, kitchens, dining areas, an entertainment area and a recreational facility.

LNG Canada says providing accommodation will reduce the strain on Kitimat’s own services and it will also be providing on-site health care.

The permits received by TransCanada for its Coastal GasLink pipeline were the last two of them needed for the pipeline and natural gas metering system.

The issuing of the latest permits to TransCanada means that the project has met B.C. environmental protection standards. The project received an environmental assessment certificate in October of 2014.

The pipeline is intended to run 670 kilometers between natural gas fields in Dawson Creek and Kitimat, carrying liquefied natural gas to the LNG Canada processing and export facility which would ship the product in tankers overseas.

As of January, TransCanada had signed economic benefits agreements with 11 First Nations groups along the pipeline path, but is still working to reach a deal with remaining groups.

The company expects the pipeline construction will generate up to 2,500 jobs and will cost approximately $4.8 billion.