Bermuda-based Golar LNG has confirmed that it has signed a finalized contract for both feed gas supply and LNG purchase and off-take for train #1 of the Douglas Channel LNG Project, the smallest of the three (so far) proposed LNG projects in Kitimat.

Golar says in a news release:

The contract award for LNG purchase and off-take was made jointly to Golar and LNG Partners, LLC (Houston, TX) ("LNG Partners") and the contract award for feed gas supply was made to LNG Partners.

The DC Project is being jointly developed by the Haisla Nation and Douglas Channel Gas Services Ltd and is expected to produce approximately 700,000 metric tonnes per annum of liquefied natural gas from the initial planned production facility beginning in the second quarter of 2015.

Golar's participation in the project and its commitment to the LNG off-take remains subject to the Company reaching agreement with the current proponents of the DC Project for financing of the facilities, and receipt of all permits required for the project to proceed on a firm basis.

 

Golar LNG describes itself on its website as “one of the world’s largest independent owners and operators of LNG carriers.”

At the meeting of District of Kitimat Council on Jan. 21, 2013, Mayor Joanne Mongahan said that the BC LNG - Golar deal would mean enough business to fill about one LNG tanker each month. That volume of gas can be transported over the existing Pacific Northern Gas pipeline, Monaghan said.

Related Douglas Channel Energy signs preliminary deal for two LNG tankers