On Thursday, the Canada Energy Regulator announced it has approved application from Chevron Canada for a 40-year licence to export natural gas from the proposed Kitimat LNG project.
The approval for the licence comes despite environmental opposition.
The application was initially filed to the National Energy Board, the predecessor of the CER, last spring. In the application, Chevron was looking to double the previously approved export licence duration and nearly double the potential output of the Kitimat LNG project to 997 billion cubic feet of natural gas per year.
In its decision, the CER noted it rejected an application from BC environmentalist Michael Sawyer to restart the regulatory process and hold a public hearing.
The regulator also rejected Sawyer’s argument that an adequate natural gas supply hadn’t been proven, despite a Chevron expert’s estimate that Canada and North America holds natural gas resources of 1,000 trillion cubic feet and 4,000 Tcf, respectively.
Chevron says it has not reached a final decision on the project, although the company says in its application that it expects to commission the facility by 2029.
Last fall, Shell Canada and its partners in LNG Canada announced it will begin construction of its $40 billion, 14 million-tonne-per-year project near Kitimat. LNG Canada is expected to be in service by 2024.
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