The National Energy Board (NEB) approved the application of Australia’s Woodside Energy for a 25 year natural gas export licence with a maximum term quantity of 807 billion cubic metres.
The export point would be in the vicinity of Grassy Point, north of Prince Rupert, British Columbia at the outlet of the loading arm of a proposed natural gas liquefaction terminal. The issuance of this licence is subject to the approval of the Governor in Council, NEB said in a statement.
“When evaluating natural gas and LNG export licence applications, the Board considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada,” NEB pointed out.
When doing so, NEB recognizes that Canadian natural gas requirements are met in the context of free trade within a North American energy market.
According to NEB, when taken together, the LNG export licence applications submitted to date, represent a significant volume of LNG exports from Canada. However, all of these LNG ventures are competing for a limited global market and face numerous development and construction challenges.
Consistent with the evidence submitted in Woodside Energy’s application, NEB said it believes that not all LNG export licences issued by the Board will be used or used to their full allowance. Therefore, the Board evaluates each application based on its own merit, it said.
NEB has determined that the quantity of gas proposed to be exported by Woodside Energy is surplus to Canadian needs.
“The Board is satisfied that the gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, the natural gas exports proposed in this Application, and a plausible potential increase in demand,” it added.