Friday, January 30, 2015

National Energy Board approves Woodside Energy LNG export licence

Woodside Energy LNG, the Australian energy company that has been exploring its options for LNG development at Grassy Point received a 25 year natural gas export licence on Thursday, providing for another step along in the process of LNG for the North Coast.

That announcement, one of a number that the National Energy Board has made in recent months is part of the review by the Federal regulator of the many proposed LNG developments in British Columbia.

It's a positive move for those looking for progress when it comes to LNG development for the region, but whether a decision from the National Energy Board of yesterday is ever followed up by the company remains to be seen.

Woodside Energy proposal for
an off shore LNG facility for
Grassy Point
Woodside which has been reviewing its options for Grassy Point over the last year or so, has also become a major partner with Chevron for a proposed LNG terminal development in Kitimat.

That Kitimat LNG project is considered by those in the LNG industry as much further along in planning than the proposed Grassy Point project.

Whether Woodside Energy is inclined to take on two major investments in the Northwest at this time, is something that will be watched with interest by LNG observers in the months ahead.

Grassy Point already has had one of the two proposals for the area taken off the drawing board, earlier this month Aurora LNG confirmed that it was shifting its focus for an LNG terminal towards Digby Island, a site that Aurora believes offers the best opportunity for the company to move its plans forward.

The distribution note regarding the Woodside Energy approval  allows for a maximum term quantity of 807 billion cubic metres for export, you can review the NEB announcement for Woodside Energy here.

More background on their two potential developments can be found on our archive pages, the Woodside Energy Grassy Point proposal can be reviewed here, while details on their Kitimat LNG partnership with Chevron can be examined here.

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