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Chevron Canada gets regulatory nod to export LNG from Kitimat facility

Chevron Canada Ltd. obtained approval from the Canada Energy Regulator to export LNG from a natural gas liquefaction terminal near Kitimat, British Columbia, for a term of 40 years.

In its Dec. 4 letter of approval, the regulator said the amount of gas which Chevron Canada proposes to export is a surplus to the needs of Canada and thus would not affect the country's gas demands. The Canada Energy Regulator's decision is still subject to the approval of the Governor in Council.

The Chevron Corp. subsidiary, along with Australia's Woodside Energy Ltd., in April submitted an export license application to Canada Energy Regulator, previously known as the National Energy Board, to boost the production capacity of their Kitimat LNG facility to up to 18 million tonnes per annum of LNG, from the originally proposed 10 mtpa. The application also sought the regulator's authorization to export LNG for a 40-year term.

The Kitimat LNG terminal project is a 50/50 joint venture between Chevron Canada and Woodside Energy. The companies expect to commission the terminal by 2029, subject to regulatory approvals and a final investment decision on the project.