KLNG says project timetable still intact
By Cameron Orr, Kitimat Northern Sentinel, October 15, 2008
The Kitimat LNG liquefaction terminal - a recent turnaround from the originally proposed regasification facility - is still on track for a late 2009 or early 2010 groundbreaking.
So says Ilene Schmaltz, vice president of supply marketing with KLNG, who gave an update on the project to city council.
“Prices in Asia are quite a bit higher [for natural gas] than North America and we expect that to be a long term situation,” she said, noting Asia’s heavy reliance on imported fossil fuels because of their own lack of domestic supply.
Schmaltz said the largest buyers of liquefied natural gas (LNG) in the world are the Asian markets, including South Korea and Japan.
European countries, which rely on the gas heavily in the winter months, are also significant buyers of LNG,
The “icing on the cake” as far as the decision to change the LNG direction was talk of world scale natural gas reserves - in the form of shale or unconventional gas plates - in Northeastern BC and Alberta which will be coming onstream over the next few years.
That spike in supply is a good thing for natural gas exports, especially as KLNG may now be competing for supply against another operation, LNG Partners LLC.
The LNG Partners venture would use excess capacity in western BC’s pipeline system to take natural gas to a liquefaction vessel which would be owned and operated by Maverick LNG Holdings.
Councillor Mario Feldhoff asked if this operation would affect the KLNG plans.
“No, we don’t believe that really affects us at all,” said Schmaltz. “We believe there will be lots of gas for our project.”
Feldhoff also noted oil sands projects themselves had a high demand for natural gas.
But Schmaltz responded that her company has talked with oil sands producers which had been interested in KLNG’s import facility, and “with the changes in development of natural gas reserves not only in Canada but in the US, they are much more comfortable that there is going to be lots of natural gas for everybody.”
Schmaltz said the liquefaction facility, to be located at Beese Cove, will occupy the same footprint as the regasification plant but will actually have lower air emissions and ocean disposal.
The number of vessels using the port will be the same, or potentially slightly fewer.
They will be exporting approximately 3.5 to 5 million tonnes annually, and the Pacific Trails Pipeline, a partnership between KLNG parent company Galveston LNG, and PNG, will still be built.
That will be a 470 kilometre, 36-inch diameter pipe.
Provincial approval for the pipe was given in June - the pipe was permitted as bi-directional - and federal approval is expected at the end of the year, although Schmaltz said a slight delay may be expected due to the current election.
Mayor Rick Wozney wished KLNG the best after Schmaltz’s presentation.
“Construction will certainly be a welcome aspect in our community,” he said. “One-hundred jobs will certainly go a long ways to trying to recoup our economy in our community.”
The Kitimat LNG liquefaction terminal - a recent turnaround from the originally proposed regasification facility - is still on track for a late 2009 or early 2010 groundbreaking.
So says Ilene Schmaltz, vice president of supply marketing with KLNG, who gave an update on the project to city council.
“Prices in Asia are quite a bit higher [for natural gas] than North America and we expect that to be a long term situation,” she said, noting Asia’s heavy reliance on imported fossil fuels because of their own lack of domestic supply.
Schmaltz said the largest buyers of liquefied natural gas (LNG) in the world are the Asian markets, including South Korea and Japan.
European countries, which rely on the gas heavily in the winter months, are also significant buyers of LNG,
The “icing on the cake” as far as the decision to change the LNG direction was talk of world scale natural gas reserves - in the form of shale or unconventional gas plates - in Northeastern BC and Alberta which will be coming onstream over the next few years.
That spike in supply is a good thing for natural gas exports, especially as KLNG may now be competing for supply against another operation, LNG Partners LLC.
The LNG Partners venture would use excess capacity in western BC’s pipeline system to take natural gas to a liquefaction vessel which would be owned and operated by Maverick LNG Holdings.
Councillor Mario Feldhoff asked if this operation would affect the KLNG plans.
“No, we don’t believe that really affects us at all,” said Schmaltz. “We believe there will be lots of gas for our project.”
Feldhoff also noted oil sands projects themselves had a high demand for natural gas.
But Schmaltz responded that her company has talked with oil sands producers which had been interested in KLNG’s import facility, and “with the changes in development of natural gas reserves not only in Canada but in the US, they are much more comfortable that there is going to be lots of natural gas for everybody.”
Schmaltz said the liquefaction facility, to be located at Beese Cove, will occupy the same footprint as the regasification plant but will actually have lower air emissions and ocean disposal.
The number of vessels using the port will be the same, or potentially slightly fewer.
They will be exporting approximately 3.5 to 5 million tonnes annually, and the Pacific Trails Pipeline, a partnership between KLNG parent company Galveston LNG, and PNG, will still be built.
That will be a 470 kilometre, 36-inch diameter pipe.
Provincial approval for the pipe was given in June - the pipe was permitted as bi-directional - and federal approval is expected at the end of the year, although Schmaltz said a slight delay may be expected due to the current election.
Mayor Rick Wozney wished KLNG the best after Schmaltz’s presentation.
“Construction will certainly be a welcome aspect in our community,” he said. “One-hundred jobs will certainly go a long ways to trying to recoup our economy in our community.”
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