The Douglas Channel LNG Consortium takes full ownership and control of the Douglas Channel LNG project
The Douglas Channel LNG Consortium today announced that it now has full ownership and control of the Douglas Channel LNG project as a result of the Plan of Arrangement completed under the Companies’ Creditors Arrangement Act (“CCAA”) proceeding. All of the useful assets of the former project have been transferred to the Consortium and all creditor claims have been settled.
In parallel, the Consortium has also executed long - term lease agreements with the Haisla Nation regarding land and water tenure, and with Pacific Northern Gas Ltd. (PNG) for long - term pipeline capacity to supply gas to the project. On the strength of these contracts, assets and approvals the Consortium is advancing towards a final investment decision in fourth quarter 2015 for the Douglas Channel LNG project.
The target Commercial Operation Date to commence LNG exports is 2018. The Douglas Channel LNG project wi ll be a barge - based LNG facility on District Lot 99 near Kitimat, British Columbia. Natural gas will be sourced from Western Canada and transported to the project site for liquefaction via PNG’s existing pipeline system under a 20 - year transportation contract approved by the British Columbia Utilities Commission.
The project site is secured by a long - term lease with the Haisla Nation. The project will have initial nameplate capacity of 0.55 million tonnes per annum. The land and foreshore access provide fut ure opportunity to expand and accommodate additional LNG processing projects. Under Consortium ownership, the Douglas Channel LNG project is controlled by creditworthy partners with a full suite of expertise throughout the energy export value chain.
EXMAR, an independent Belgium - based company with 35 years’ experience in LNG shipping, will be responsible for the development and operation of the floating liquefaction facility. As the owner and operator of what will be world’s first floating liquefaction facility , it has significant capabilities to leverage off building a similar facility for the Douglas Channel LNG project. EDF Trading will hold the required pipeline capacity to deliver gas to the project and will be the LNG offtaker of the project. EDFT is a subsidiary and wholesale market operator of Électricité de France S.A., an international energy company with over 39 million customers. It is a major participant in the global LNG market and offers a complete range of required services. AIJVLP is a limited partnership between AltaGas Ltd. and Idemitsu Kosan Co.,Ltd.
Idemitsu is a global leader in the supply of energy, petroleum, and other products, with strong market presence in JapanAltaGas is a leading energy infrastructure company in North America with access to natural gas supply in Western Canada and pipeline access to the Dougl as Channel through ownership of PNG. The AIJVLP will leverage the energy industry experience and expertise of both companies and AltaGas’ relationship with First Nations and local communities. AltaGas will act as the project manager of the Douglas Channel LNG project .