Business | Northwest Coast Energy News

Clio Bay reclamation postponed as new contractor takes over at KM LNG

Marine clay sign Robin Rowland photo — Sign explaining marine clay at the Chevron/ KMLNG Open House, in Kitimat, March 13, 2014. (Robin Rowland/Northwest Coast Energy News)

Studies on the Clio Bay reclamation project have been postponed until the fall while the new prime contractor takes over the Kitimat LNG project.

A spokesperson for Chevron said at the Kitimat LNG open house on Wednesday now that Irving , Texas-based Fluor Corp, in partnership with a joint-venture partner, Japan’s JGC Corp. has won the engineering, procurement and construction contract for the KM LNG project, it will take some time for the new company to be briefed on the Clio Bay project and then begin working with Stantec the environmental contractor on the project. That means that the reclamation project itself will now not likely proceed until spring of 2015.

In community meetings last fall, Chevron had said it expected the preliminary studies to be completed in January or February.

KM LNG, a partnership between Chevron and Apache Corp, took over the Riverlodge Recreation Centre for three days from February 2 to 4, to brief employees and contractors on the transition from KBR Inc., the original prime contractor which lost the bidding for the second stage of the contract to Flour.

KM LNG organized the open house mainly to show what is happening at the old Eurocan site, which is being converted to a work camp for the project.

The Clio Bay project, however, had a prominent place among the panels on display at Riverlodge. In the panels, Chevron says that up to 40 per cent of the Clio Bay bottom is covered with wood debris, at some points, as much as 10 metres deep, meaning a degraded habitat for dungeness crab and eel grass.

As was announced in the fall, Chevron, in partnership with the Haisla Nation, plan to take marine clay from Bish Cove and use it to cover the wood debris to create a new sea bottom. One panel said: “The new layer of marine clay is expected to be colonized by eel grass and by species such as worms, crustaceans, small fish and other sea life that will encourage a more plentiful, healthy ecosystem replacing the degraded ecosystem created by the decomposing wood debris that now covers the ocean floor.”

Chevron sees the project as an example that others could follow. Another panel notes: “Project proponents around the world are moving away from the old practice of dredging and disposing of marine clay. The Clio Bay restoration project would see marine clay used wisely to deliver benefits to the environment, community and culture.”

Work continues on the remediation of the old Eurocan mill site. Chevron and Apache are, in effect, spending millions of dollars to clean up the mess left behind when West Fraser abandoned the mill.

The company has to demolish the old mill and remediate contaminated areas. One of the big challenges is dealing with the old landfill site, which Chevron says has to be brought up to 21st century environmental standards. That includes adding an impermeable lining to the landfill and upgrading the leachate treatment systems.

Cleaning up the mess left by Eurocan will take about five years, according to one of the panels at the Open House. Chevron says that job will improve the environment, where they plan to build a work camp both in the short term and in the long term as work continues.

Coastal GasLink pipeline opens environmental assessment process

The Coastal Gaslink pipeline proposal to bring natural gas to Kitimat for the Shell LNG Canada project is now entering the 45 day public comment environmental assessment period. It opens on March 21, 2014 and closes May 5, 2014.

Coastal GasLink Pipeline is a wholly-owned subsidiary of TransCanada Pipelines. The company is proposing to develop an approximately 650 kilometre pipeline to deliver natural gas from the area near the community of Groundbirch, B.C., to the LNG Canada gas liquefaction facility proposed to be developed by Shell Canada Ltd. and its partners in Kitimat.

An electronic copy of the Application and information regarding the British Columbia environmental assessment process are available at www.eao.gov.bc.ca.

The British Columbia Environmental Assessment Office, with the support of Coastal GasLink, will host four open houses in northern B.C. communities during the comment period.

The proposed Project would have an initial capacity of about two to three billion cubic feet (bcf) of natural gas per day with the potential for expansion up to about five billion cubic feet per day. The company says the expansion scenario assessed in the application does not involve the construction of additional pipeline; the number of potential future compressor stations would change.

The proposed pipeline is subject to review under British Columbia’s Environmental Assessment Act.

Starting on March 21, there are 45 days for the submission of comments by the public in relation to the Application. All comments received during this comment period will be considered. The intention of seeking public comments is to ensure that all potential adverse effects – environmental, economic, social, heritage and health – that might result from the proposed Project are identified for consideration as part of the assessment process.

The BC EAO accepts public comments by:

• By Online Form: http://www.eao.gov.bc.ca

• By Mail:

Mr. Brian Westgate
Project Assessment Manager
Environmental Assessment Office
P.O. Box 9426 Stn Prov Govt
Victoria, B.C. V8W 9V1

• By Fax: 250-356-7477

Copies of the application are available in digital or paper form at public libraries in the project area.

The BC EAO invites the public to Open House events on the following dates:

March 27, 2014: Chetwynd & District Recreation Centre
April 1, 2014: Fraser Lake Recreation Complex
April 2, 2014: Burns Lake Heritage Centre
April 3, 2014: Riverlodge Recreation Centre, Kitimat

LNG Canada passes first step in BC environmental review, to hold LNG demonstration at Mt. Elizabeth Theatre

LNG Canada, the project led by Shell Canada Energy, has passed the first step in the environmental review process for the liquified natural gas plant and terminal.

LNG Canada said Tuesday that the British Columbia Environmental Assessment Office has approved LNG Canada’s Application Information Requirements (AIR) for the proposed project.

The company says the AIR outlines the studies, methods, and information that will be required in LNG Canada’s Application for an Environmental Assessment Certificate.

The LNG Canada AIR was developed in consideration of comments submitted by the public, First Nations and regulators during a 30-day public comment period held in November/December 2013, including a public meeting at the Kitimat Rod & Gun, where documents were distributed and employees answered questions from politicians and the public.

LNG Canada says it will now continue to gather information and complete studies in support of developing our Environmental Assessment Application.

The company intends submit to the Environmental Assessment Application to the the B.C. EAO later this year.

LNG Canada will hold its next public meeting, an “LNG Demonstration and Presentation” on March 6, 2014 at the Mount Elizabeth Theatre starting at 6 p.m. The company says the event is to “to share information and answer questions about liquefied natural gas (LNG).” Starting at 7 pm there will be a a live demonstration using LNG to explain the science behind liquefaction and the properties of LNG.

For more information about the project’s EA process, www.eao.gov.bc.ca and look for our project under the “Proposed EAs” sections.

The other partners in the LNG Canada project are Diamond LNG Canada, an (“affiliate” of Mitsubishi), Korea Gas Corporation and Phoenix Energy (an “affiliate” of PetroChina).

Rio Tinto sells Kitimat wharf and land options to LNG Canada

LNG Canada footprint map — A map provided by LNG Canada shows the potential footprint of the liquifaction facility and marine terminal next to the Rio Tinto Alcan aluminum smelter. The map was part of LNG Canada’s filing for a BC environmental assessment and shows that the old Eurocan dock would be part of the facility.(LNG Canada)

Rio Tinto has signed an option agreement with the LNG Canada project “to acquire or lease a wharf and associated land at its port facility” in Kitimat.

A news release from Rio Tinto’s head office in London says: “The agreement provides LNG Canada with a staged series of options payable against project milestones. The financial arrangements are commercially confidential.”

Since LNG Canada, a joint venture of Shell Canada Energy, Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment (Hong Kong) Limited), Kogas Canada LNG Ltd. (an affiliate of Korea Gas Corporation) and Diamond LNG Canada Ltd. (an affiliate of Mitsubishi Corporation) has not yet made a Final Investment Decision on the project, the option will likely be triggered if that decision is made. There is currently uncertainty about Royal Dutch Shell projects worldwide due to management restructuring at the parent company.

The news release quotes Sam Walsh, chief executive, Rio Tinto as saying: “This is an excellent example of how we can generate meaningful value from our existing assets by selling options on port facilities to LNG Canada enabling it to share one of the best deep water ports on the western seaboard of the country. This innovative approach will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economy of British Columbia.”

Andy Calitz, vice president, LNG Canada commented in the news release: “We are pleased to confirm the finalization of this agreement. We believe the LNG Canada project represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and
communities of British Columbia.”

The deal between Rio Tinto, parent company of Rio Tinto Alcan, for the old Eurocan dock, has been in the works for some time. When LNG Canada filed for its environmental assessment with the province of British Columbia a few weeks ago, the map showed the footprint of the project extended from the old Methanex plant site, where LNG Canada will be located through RTA lands on the Kitimat river estuary to the dock, long before Wednesday’s deal was signed.

RTA charters Baltic ferry for KMP accommodation, to be called “Delta Spirit Lodge”

Rio Tinto Alcan and the Kitimat Modernization Project (KMP) are chartering a converted Baltic ferry to expand the modernization project’s work lodging for nine months, as the company gears up for “the final construction year,” RTA said Tuesday in a news release.

The ship, the Motor Vessel Silja Festival, will be renamed the “Delta Spirit Lodge” in honour of the first ship used for worker accommodation in the early days of the Kitimat project, the Delta King.

RTA says the ship left Estonia on Monday and is expected to arrive in Kitimat near the end of February. The ship “will have a service staff of approximately 110 and will offer first rate amenities including 500 bedrooms, kitchen, dining and lounge facilities.” The “Delta Spirit Lodge” will dock at RTA’s “Terminal B,” the former Eurocan wharf for the duration of the contract.

The charter agreement was made in cooperation with Transport Canada and Bridgemans Haisla LP to provide the accommodation services. RTA spokesperson Colleen Nyce said in the release, “With the decision to secure a very large accommodation ship, Rio Tinto Alcan has taken another responsible action to ensure that the temporary workforce associated with the Kitimat Modernization Project causes minimal burden on its host community.”

The 34,414 gross tonne, 171 metres overall, eleven deck ferry was built in Aker Finnyards in Helsinki, Finland and went into service on September 1, 1986, as a passenger and roll on roll off ferry. It was renamed the Silja Festival in 1991 and refitted in 1992. It has 588 passenger cabins, plus restaurants, a show bar, shops, cafés, a sauna and conference facilities. The ship also boasts a casino.

The registered owner is the Tallin Swedish line, based in Tallinn, Estonia. It is managed by HT Shipmanagement of Riga, Latvia and flags the Latvian flag.

Earlier a news release from US Shipbrokers announced the deal, saying:

US Shipbrokers is pleased to announce that we have just facilitated with co-brokers the Charter/Purchase of the M/V Silja Festival from her owners Tallink Group to Canadian interests . The Cruise Ferry Silja Festival will be used as an accommodation vessel for a construction project in British Columbia. US Shipbrokers was contacted by charterers in December due to our vast experience with accommodation charters throughout the United States and the Caribbean, and with our network of worldwide brokers and our proven results, we were able to close this charter/purchase within one month.

The Delta King was a California riverboat with a colourful history that was moored at Alcan Beach during the early days of the original Alcan construction project. It is now a luxury hotel moored in Sacremento and on the US National Register of Historic Places.

Pension funds pressure Rio Tinto to dump out of controversial Alaska Pebble Mine

Rio Tinto says “it intends to undertake a strategic review” of its stake in the highly controversial Pebble Mine project near Bristol Bay, Alaska.

In a news release, Rio Tinto says it is considering its future holdings in a Vancouver-based mining company named Northern Dynasty, which now is the main proponent of the copper and gold mine project. Rio Tinto “through QIT-Fer et Titane Inc., an indirect wholly-owned subsidiary of Rio Tinto plc, owns 18,145,845 common shares of Northern Dynasty, representing approximately 19.1 per cent of Northern Dynasty’s issued and outstanding shares.”

Rio Tinto says the review is part of the financially troubled conglomerate’s review of its mining holdings: “Rio Tinto will consider the Pebble Project’s fit with the Group’s strategy of investing in and operating long life and expandable assets, and with the strategy for its Copper business, which is focused on its four producing assets (Kennecott Utah Copper, Oyu Tolgoi and its interests in Escondida and Grasberg), and two development projects, La Granja in Peru and Resolution in Arizona.”

The Pebble Mine project is as controversial in Alaska and the western United States as the Northern Gateway pipeline project is in British Columbia. Critics say the proposed huge open pit copper and gold mine could endanger the Alaska headwaters of the Kvichak and Nushagak rivers, considered two of the world’s great salmon spawning grounds. Both flow into the “salmon nursery” in Bristol Bay, where young salmon go to feed, possibly also imperiling salmon stocks from both Alaska and British Columbia

On November 4, 2013, the City of New York and the State of California, whose pension funds have large holdings of Rio Tinto stock, wrote to CEO Sam Walsh, asking the company to reassess the project.

New York City controller John Liu and California state controller John Chiang said their letter was prompted when Rio Tinto rival Anglo-American sold its share of the controversial project in September.

Their letter cited environmental concerns, including the fact that the project would leave 10 billion tonnes of mining waste near the salmon spawning grounds, increased regulatory scrutiny from the US Environmental Protection Agency and what the two controllers called “reputational risks” including opposition from Alaska First Nations and even jewelry companies like Tiffany & Co and Zales and Jostens. The letter cited a poll which showed 73 per cent of Americans, 84 per cent of Alaskans and 98 per cent of Bristol Bay residents opposed the project.

Rio Tinto replied on November 14, in a letter not from CEO Walsh but from John-Sebastian Jacques, chief executive of the copper division, saying Rio Tinto would “encourage a responsible approach among all shareholders” and the company would continue to “review and analyze” the risks involved.

On December 19, the two controllers then called upon Rio Tinto to divest itself of the Northern Dynasty shares, calling, according to the Associated Press, Rio Tinto’s response “perfunctory.”

Rio Tinto spokesman David Outhwaite told AP the strategic review is not connected to that letter or a letter the financial officers sent Walsh.

Ango-American, one of Rio Tinto’s giant mining rivals, pulled out of the Pebble Mine project in September. Teck Cominco and Mitsubishi had pulled out earlier, leaving Rio Tinto as the only major company involved in the project.

When it decided to sell its share back to Northern Dynasty, Anglo-American also cited a “strategic review” of the company’s operations.

At the time, Rio Tinto’s Jennifer Ruso told the Alaska Dispatch, the company “will only participate in the project if it can be constructed, operated and closed in a manner that preserves the water, salmon, fisheries, wildlife and the environment. The project must also be developed in accordance with our strict standards for health, safety, environmental protection, cultural heritage, and community relations.”

Northern Dynasty and Rio Tinto then said they were considering an underground mine instead of an open pit operation, which did not satisfy environmental critics of the project.

On December 13, Northern Dynasty reported that it had re-acquired 100 per cent ownership of the Pebble Mine project after completing the pull out deal with Anglo-American.

The company, however, is looking for new partners. It says:

Our primary focus is to select the right partner for Northern Dynasty and the right investor for Alaska, a company with sufficient financial resources and technical capabilities, working experience in the United States and a shared commitment to environmentally sound and socially responsible development. We have little doubt that Pebble will attract major mining company interest in the months ahead.

The news release says that Northern Dynasty has spent US$556 million over the past few years and “substantial progress has been made toward our goal of permitting, constructing and operating a world-class, modern and environmentally responsible mine at Pebble that will co-exist with the fisheries resources of southwest Alaska.”

In the news release, Northern Dynasty President & CEO Ronald Thiessen said Pebble’s engineering design, environmental science and regulatory planning were advanced that the company would begin to ask for US and Alaska permitting under the National Environmental Policy Act (NEPA) sometime the first quarter of 2014.

It describes the project this way:

The Pebble Project is an initiative to responsibly develop a globally significant copper, gold and molybdenum deposit in southwest Alaska into a modern, long-life mine, which will benefit not only Northern Dynasty, but the people, culture and industries of the State of Alaska, as well as suppliers, consultants and industries in the Lower 48 United States of America.
A recent study authored by IHS Global Insight, entitled The Economic and Employment Contributions of a Conceptual Pebble Mine to the Alaska and United States Economies found the Pebble Project has the potential to support 15,000 American jobs and contribute more than $2.5 billion annually to US GDP over decades of production.

The Pebble Project is located 200 miles southwest of Anchorage on state land designated for mineral exploration and development. It is situated in a region of rolling tundra approximately 1,000 feet above sea-level, 65 miles from tidewater on Cook Inlet and presents favourable conditions for successful mine site and infrastructure development.

As the Alaska Dispatch reported when Anglo-American pulled out, the copper and gold deposits are so extensive and potentially valuable that pressure to develop the mine will continue despite the threat to salmon and the Alaska environment.

Commentary: In the tanker study, the District of Kitimat was missing in action

The list of participants in the oil spill preparedness and response study released last week by the federal government shows two glaring no shows, the District of Kitimat and Rio Tinto Alcan.
The Haisla Nation and the Gitga’at Nation did provide written submissions to the panel.

The expert panel was set up by the federal government to review “oil handling facilities and ship-source oil spill preparedness and response.” The expert panel was to review the “structure, functionality and the overall efficiency and effectiveness of the system, as well as analyzing the requirements for hazardous and noxious substances, including liquefied natural gas.”

Transport Canada tanker report — Expert panel tanker risk assessment report cover (Transport Canada)

As well as commissioning the Genivar report on the state of oil spill preparedness and consequences, the panel interviewed stakeholders and visited a few key locations, including Port Metro Vancouver.

The panel also invited any interested groups to submit documents or their own views to be taken into consideration.

Among the stakeholders interviewed by the panel were companies and organizations very familiar to Kitimat; Chevron and Shell, main partners in two of the LNG projects; Enbridge, which has proposed the Northern Gateway Pipeline and Kinder Morgan which has proposed expanding the dilbit pipeline on the Lower Mainland. Other stakeholders included Coastal First Nations, the Prince Rupert Port Authority, SMIT Marine and the Vancouver Port Authority.

As well as the Haisla and the Gitga’at, five west coast municipalities submitted their own reports to the tanker panel, both the city and districts of North Vancouver, the city of Richmond, the District of Ucluelet and the District of West Vancouver. San Juan County in Washington State also made a submission to the panel. So did the Prince Rupert and Vancouver Port authorities.

Chevron, Enbridge, Imperial Oil, Kinder Morgan, Pacific Northwest LNG, Seaspan Marine, and the Union of BC Municipalities, among others also submitted their views to the panel.

So why didn’t the District of Kitimat participate? When it came to the Enbridge Northern Gateway Joint Review, the mayor and council always maintained their neutrality motion meant that the District would not be an active participant. That was always a short sighted viewpoint. The District should have participated actively in the JRP in such a way as to protect the region’s interests where necessary while remaining neutral. If the District of Kitimat sat out the tanker panel because of the Northern Gateway neutrality policy, that was no excuse, because the expert panel’s mandate specifically included LNG.

Tanker traffic is a potential threat to the San Juan Islands (the Gulf Islands on the American side of the border). It is astounding that San Juan County would think that the Canadian tanker panel was important enough to make a submission and the District of Kitimat did not.

What about Rio Tinto Alcan? Kitimat has been a private port for 60 years, run first by Alcan and then by Rio Tinto Alcan. Why wasn’t RTA asked to participate as a stakeholder? Why didn’t RTA make a submission? Those who are pushing the Northern Gateway terminal always like to say that tankers have been calling at Kitimat for those 60 years. That is true. Of course, none of those tankers have been the Very Large Crude Carriers proposed by Northern Gateway. However, those 60 years means that RTA has the expertise on the Port of Kitimat and Douglas Channel. RTA probably has important data that could have helped both the expert panel and Genivar (which pointed out the paucity of data on small and medium sized tankers). In not participating in the tanker panel submissions and possibly not providing valuable data on Douglas Channel, RTA neglected its social responsibility both to the community of Kitimat and the rest of the province of British Columbia.

LNG Canada aims to be “first out of the gate” in the rush to develop in Kitimat

LNG Canada meeting — Residents of Kitimat discuss the proposed LNG Canada facility with company officials at the Rod and Gun, Nov. 27, 2013 (Robin Rowland/Northwest Coast Energy News)

LNG Canada says it wants to be “first out of the gate” in the competitive race to send BC’s liquified natural gas to Asian markets.

The company held a well attended open house at the Kitimat Rod and Gun on November 27, with the usual array of posters and experts, to mark the beginning of the environmental assessment process for what is formally called the “LNG Canada Export Terminal Project.:

The LNG Canada Export Project is a partnership of Shell,Canada Energy, Diamond LNG Canada, an (“affiliate” of Mitsubishi), Korea Gas Corporation and Phoenix Energy (an “affiliate” of PetroChina) filed a draft application for an Environmental Assessment Certificate with the BC Environmental Assessment Office and Canadian Environmental Assessment Agency on November 8. The 30-day public comment period on the draft Application Information Requirements started on November 13, 2013 and end on December 13, 2013.

The extensive documentation can be downloaded in PDF format from the BCEAO site. The documents can also be viewed at the Kitimat and Terrace Public Libraries and the LNG Canada office in Kitimat at the old Methanex site.

“What we want to be able to do is actually to provide information in a way that we can provide a lot of conversation with the community, so we can really have a dialogue, to give them a place where they know than go to get answers. We do believe that we can be the best project in British Columbia, the only way we can do that is if we have the support of the community,” LNG Canada’s Susannah Pierce told reporters.

“We would like to be first out of the gate. This is a competitive industry and we’re not just competing in terms of providing Canadian gas to the Asian markets, we’re competing with everyone else for the opportunity to deliver product to market.”

The application says that the all-important Financial Investment Decision will likely be “made mid-decade followed by 4-5 years of construction with commissioning of the first phase to follow.”

The first phase would have a first phase of about 12 million tonnes a year of LNG, with another MTPA (million tonnes per anum) in “one or two subsequent phases.”

Federal, provincial and municipal governments or agencies, First Nations and the general public have the ability to comment on the proposal.

An aerial photo map included in the application shows the footprint of the proposed LNG Canada operation. Although the LNG Canada project is based at the old Methanex plant, the map shows that the LNG plant will take up a much larger area than the original. The old Methanex access road would be widened parallel to the Rio Tinto Alcan smelter and a Cyrogenic Pipeline would cross the Kitimat River estuary to the marine terminal.

The scope of the project includes one possibly controversial item: “Onsite power generation,” where natural gas would be used to power the cooling equipment to turn the gas into LNG.

The assessment will also look the natural gas receiving and production facility; “a marine terminal able to accomodate two LNG carriers each with capacity up to 265,000 cubic metres (approximately 122,000 DWT) and a materials offloading area; supporting infrastructure and the construction facilities.

The environmental assessment will examine air quality, green house gas management, the acoustic environment (the noise created by the project), soil, vegetation, wildlife, freshwater, esturine fish and habitat, marine resources including fish and fish habitat and marine mammals, water and ground water quality.

The economic and social assessment includes infrastructure, land use, “visual quality,” odour, marine transportation and use, community health and well being, archaeological heritage and human health.

The assessment process will also “assess potential cumulative economic, health, social and heritage effects from the Project…interacting cumulatively with similar effects of past, present and future projects activities. The current table of projects to be considered for cumulative effects include the Rio Tinto Alcan Aluminum Smelter and Modernization Project, the Kitimat LNG and Douglas LNG terminals, the possible Enbridge Northern Gateway porject, the new use for the old Methanex and Cenovus operations, the operations at the Sand Hill, the former Moon Bay and current MK Bay Marinas.

Projects further away include LNG and other projects and associated pipelines at Prince Rupert, including expansion of the current ports and the redevelopment of Watson Island. Cruise ship and BC ferry operations will be only considered where they impact the shipping routes. Any forestry operations will also only be considered where they impact the project.

Updated to fix typos, including spelling of Feldhoff

LNG Canada maps air shed study area

Kitimat Airshed Map — Map released by LNG Canada shows the air shed area that the company will study as part of the environmental assessment. (LNG Canada)

Two of the maps filed by the LNG Canada project with provincial and federal environmental assessment agencies look at the air quality problems from the project, including the controversial prospect of cumulative problems from multiple industrial projects in the Kitimat Valley, one of them the RTA Kitimat Modernization Project which will increase sulphur dioxide emissions while decreasing some other emissions.

One map covers what is being called the airshed, in the case of LNG Canada, air quality will be assessed with the LNG facility at its centre. A second map covers the tanker route, and as well as a 40 km square grid around the plant that will also assess Hartley Bay, Kitkatla and Metalkatia which may be impacted by vessel emissions.

As well as scientific data, the assessment will also take into consideration traditional knowledge and traditional use from “aboriginal and other groups.”

The possible cumulative effect on the air quality in the Kitimat valley and surrounding areas has prompted the BC government to commission its own study of the Kitimat airshed.
On Oct 3, the provincial ministries of the environment and gas development announced a $650,000 scientific study “to help inform regulatory and policy development for future industrial activity in the Kitimat area. The goal is to ensure the potential impacts from industrial air emissions are clearly understood prior to new projects being approved and in operation.”
It says

The Kitimat Airshed Impact Assessment Project will look at the cumulative effects of existing and proposed industrial air emissions in the airshed. These include emissions from: an existing aluminium smelter, three proposed LNG terminals, a proposed oil refinery, a crude-oil export facility, and gas-turbine-powered electrical generation facilities. The study will focus on sulphur dioxide and nitrogen dioxide emissions from these facilities.

The study will assess the impact of emissions through a number of scenarios, including their potential effects on water and soil, as well as on vegetation and human health from direct exposure.

BC defines an airshed as

An airshed is generally described as an area where the movement of air (and, therefore, air pollutants) can be hindered by local geographical features such as mountains, and by weather conditions. The most obvious example in British Columbia is a mountain valley. Since air pollution knows no political boundaries, airshed activities may be focused on a single community or on a number of neighbouring communities faced with similar air quality problems and requiring similar action.

The LNG Canada assessment will look at two potential adverse effects, first a change in ambient air quality in the Kitimat airshed or along the marine access route and second any change in acidic deposition pattern in the Kitimat Valley.

The first study will look specifically at estimated levels of “criteria air contaminets” including sulphur dioxide, Nitrogen oxides, carbon monoxide, atmospheric particulate matter and hydrogen sulphide. The particulate matter study will use the international standard of 2.5 micrometres.

The assessment will also study possible cumulative effects on air quality of multiple projects and those projects over time.

LNG Canada air quality map — LNG Canada map shows the marine and land areas that will be studying for air quality. (LNG Canada)

Aurora LNG applies to NEB for Grassy Point export licence

Aurora LNG, a partnership headed by Nexen, the Canadian branch of CNOOC, one of China’s largest energy companies, has applied to the National Energy Board for an export licence to ship 24 million tonnes of liquified natural gas over 25 years to Asian customers from Grassy Point near Prince Rupert.

Two Japanese companies, Inpex Corp and JGC are partners with CNNOC in the joint venture.

The application comes just two weeks after the BC government gave Aurora “the right to pursue long-term access to Crown land” at Grassy Point, which is just south of the border with the Alaska Panhandle.

While the NEB is expected to grant the export licence with little difficulty, the company still has to go through environmental assessment and make a final investment decision.

So far none of the LNG projects in northwestern BC, including three in Kitimat where the NEB has already granted export licences, have been given that final go ahead from the boards of their parent companies. Tne NEB is also considering five other applications for LNG export licences.

At the time BC granted Nexen the potential tenure at Grassy Point, CEO Kevin Reinhart said: “Through project assessment and stakeholder consultation we are committed to examining the potential to build a best-in-class LNG facility – one that creates jobs, delivers lasting economic and social benefits and is developed with the environment top-of-mind.”

According to the BC government news release:

The agreement is for the northern part of Grassy Point, which covers 614.9 hectares of land, plus foreshore land equalling 158.7 hectares.
Aurora LNG will be examining the viability of constructing a liquefied natural gas (LNG) plant and export terminal at this location.
Under the agreement, Aurora LNG will pay $12 million to the Province upon signing the sole proponent agreement. Another $12 million will be paid by Aurora LNG on, or before, the first anniversary of the agreement, as long as the proponent wants the arrangement to continue.
The right to acquire the land for construction or long-term use remains a matter of future negotiations. If the land is acquired by Aurora LNG, the $24 million submitted to government will be subtracted from the final sale price.

Nexen’s plans include a natural gas liquefaction plant, LNG storage and a marine terminal to handle LNG tankers capable of carrying between 210,000 and 217,000 cubic metres of gas. The initial plans call for two trains with a possibility of two more if conditions in the always volatile LNG market warrant.

Nexen is in talks with a number of “major pipeline providers” and no pipeline route has been announced.

It is expected the first LNG shipment from Grassy Point would occur sometime between 2021 and 2023.