Kitimat LNG Terminal Clears Hurdle

An environmental assessment application for a proposed $500-million liquefied natural gas (LNG) terminal near Kitimat, B.C., has been accepted for formal review, Kitimat LNG Ltd. announced.

The announcement marks the start of a 180-day review period after which time the province will decide whether to issue a required environmental assessment certificate. The formal review stage includes a 45-day public consultation period that is scheduled from June 15 to July 30. Open houses have been announced for June 21 in Terrace, and June 22 and 23 in Kitimat.

The LNG facility has already received considerable support from the District of Kitimat, area businesses and residents, says Rosemary Boulton, President of Kitimat LNG Ltd.

“The community of Kitimat has embraced this project as an opportunity to make a much needed contribution to its regional economy,” says Boulton. “A project of this size will create new jobs, attract new businesses and provide a host of other spin-off benefits to a region in need of new investment.”

Kitimat LNG Ltd. is proposing to construct, own and operate an LNG receiving terminal in Emsley Cove, 18 km south of Kitimat. The terminal will receive and store LNG before it is regasified and shipped via existing pipelines to growing markets in B.C., Alberta and the Pacific Northwest.

Construction of the terminal is estimated to generate 700 jobs and 50 permanent full-time positions once the facility is in operation. Pending approval, construction is slated to begin January 2006, with full operation set for 2008.

Kitimat LNG Ltd. secured $50 million in an initial round of financing in January.

The Kitimat LNG Terminal requires a "Project Approval Certificate" under the B.C. Environmental Assessment Act, in accordance with the Canada-B.C. Agreement on Environmental Assessment Cooperation. Since April 2004, Kitimat LNG has been conducting environmental field studies and consulting with project stakeholders to identify impacts and opportunities related to the proposed terminal. On April 15, 2005, Kitimat LNG submitted its draft Environmental Assessment Application for initial screening by the BC Environmental Assessment Office.

From the beginning, Kitimat LNG Ltd. has met regularly with local First Nations leadership. The Haisla established a KLNG Sub-Committee to work directly with Kitimat LNG senior staff to ensure Haisla concerns are addressed. During the public review period, Kitimat LNG will implement a parallel consultation process designed specifically to gather Haisla concerns and identify issues that affect them.