KITIMAT LNG AND PACIFIC TRAIL PIPELINES
Chevron | Woodside Petroleum (Apache withdrew in July 2014, Woodside joined in December 2014)
The Kitimat LNG facility received its environmental assessment approval in 2006 and has obtained an export license. The project has not reached a final investment decision. In January, 2015 Chevron announced a significant decrease in spending on Kitimat LNG. In March, 2018 Chevron was in talks to sell part of its stake in the project.
April 2019 – Kitimat LNG applies to the NEB to nearly double the capacity and time-span of their export license to 18 MTA and 40 years.
July 8, 2019 – KM LNG Expansion Project submits a project description to both CEAA and BCEAO.
July 10, 2019 – BC EAO submits request to CEAA that the KM LNG Expansion Project be exempt from a federal EA, substituting it for a provincial EA. Public comments are being accepted until July 31, 2019 on the substitution request.
The $4.5 billion project would transport 10 million tonnes of LNG per annum, and require between 5-7 LNG shipments from Kitimat to Asia per month. Bish Cove, the target of several development projects, is a Haisla Indian Reserve and has been legally designated as an industrial park. By designating the reserve an industrial park, the Haisla allow the provincial and federal authorities to enforce and regulate industrial activities, such as LNG facilities.
The gas for this proposal would be sourced in the Liard and Horn River basins in northeastern BC. The Horn River gas has higher greenhouse gas emissions due to its carbon content.
The timing of a final investment decision for Kitimat LNG came into question in October 2013 when the Chevron Canada President stated that there is uncertainty with long term supply contracts, and questioning how the provincial fiscal regime will impact the project. Financial backing for this project became even more uncertain in the summer of 2014 when 50/50 partner Apache pulled out of the proposal. With Woodside joining the project in...
Chevron | *Apache withdrew from Kitimat LNG in July 2014, Woodside Petroleum joined in December 2014*
The Pacific Trail Pipelines is a 36” diameter pipeline proposed to transport 1.4 billion cubic feet per day of gas from Summit Lake near Prince George to the Kitimat LNG facility. It received environmental assessment approval in 2008. The proposal has not secured overseas buyers or reached a final investment decision. Clearing of the pipeline corridor is in progress.
The Pacific Trail Pipelines is most notable for having signed a limited partnership agreement. The revised agreement, with a total of 15 First Nations signatories, was announced in February 2013. Not all of the First Nations who have signed the agreement speak in favour of LNG development today, and not all of the 15 First Nations are along the proposed pipeline route.
In the summer of 2014, 50/50 partner Apache pulled out of the Kitimat LNG, highlighting the uncertainty of global gas markets. In December 2014, Woodside Petroleum purchased Apache's stake, indicating some stability for the project.
Summit Lake near Prince George to Kitimat via the Morice River
There are currently no events or public comment periods for this proposal.
Connect to the Pacific Trail Pipelines website.
Find out more about the environmental assessment for the Pacific Trail Pipelines.
Download the Pacific Trail Pipelines project description (1.1 MB).
Project map (click to enlarge):