BC Hydro to provide electricity for Canada LNG

BC Hydro to provide electricity for Canada LNG

BC Hydro and LNG Canada have signed a power agreement to allow for LNG Canada to use electricity from BC Hydro for a portion of the power needed for its proposed LNG export facility in Kitimat.

This is the first power agreement signed in British Columbia with an LNG proponent. The agreement covers a portion of the electricity supply that will be required to power the commissioning and operation of LNG Canada’s proposed facility all auxiliary power needs. LNG Canada will use natural gas turbines to drive the refrigerant compressors to chill natural gas into liquid form.

The agreement also details the development, operation and maintenance of transmission infrastructure required to connect the proposed facility to BC Hydro’ grid. LNG Canada will fund the improvement of the infrastructure.

LNG Canada is a joint venture company comprised of Shell Canada Energy (50%), an affiliate of Royal Dutch Shell, and affiliates of PetroChina (20%), Korea Gas Corporation (15%) and Mitsubishi Corporation (15%).

While today’s announcement is an important step forward for LNG Canada and its proposed project, there are several other significant milestones related to gas supply, final cost estimates, labour arrangements and regulatory approvals prior to LNG Canada making a final investment decision, the company said in a statement.

Press Release; Image: BC Hydro

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