Port Edward LNG – Not LNG as you know it

PORT EDWARD LNG

Not LNG as you know it

Port Edward LNG is a small-scale Liquefied Natural Gas (LNG) facility proposed to be located on the slope of Mount Stewart, east of Watson Island and near Galloway Rapids in Port Edward. It proposes to export 150,000 tonnes of LNG per year and be operational by 2023.

This is not LNG as you know it — this facility would be just over one per cent of the size of a large LNG project, liquefying gas for export in small quantities via conventional container ship leaving from the Prince Rupert Port.

An environmental assessment is not required as the project is not large enough to trigger one, and the B.C. Oil and Gas Commission granted Port Edward LNG permits for site preparation work in September 2021. In January 2022, Port Edward LNG signed a contract with the Pacific Northern Gas (PNG) pipeline to build a feeder pipeline to supply gas. This will be part of PNG's upgrade and expansion which they are calling Western Transmission Gas Pipeline (approved by the BC Utilities Commission in late 2021). Work on the pipeline is in progress.

The Port Edward small-scale LNG facility is the latest project to offer the potential for rate relief for existing customers of PNG.

The utility’s customers west of Vanderhoof to the coast have for years endured the highest gas delivery rates in the province because PNG lost a series of large industrial customers — and their revenue — over time. It is noted that this natural gas pipeline is only used at 35 per cent capacity right now and this LNG project will be able to increase the usage of the existing pipeline. Two pulp mill closures, one in Kitimat and the other near Port Edward, and the decision by chemical giant Methanex to shutter its natural gas-using, methanol-producing plant in Kitimat increasingly left PNG’s existing residential, small business and commercial customers paying the full cost of maintaining the utility’s largely empty pipeline. This project would be built and operated on the traditional territories of the Tsimshian communities. The Port Edward LNG team is proud of the relationships that they have built with First Nations and Indigenous communities who have been stewards of this area for centuries. They are working hard to ensure this meaningful engagement and dialogue continues.

Construction of this facility is expected to start in 2023.

For more information about Port Edward LNG, visit www.portedwardlng.com. p

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