The federal government has approved the massive $36 billion Pacific NorthWest LNG project in Prince Rupert, B.C.
Led by Malaysia’s state-owned energy giant Petronas, the facility would ship an estimated 19 million tonnes of LNG per year to Asian markets from a port near Prince Rupert.
“This is a significant milestone, and the last major requirement for Pacific NorthWest LNG before a final investment decision can be made. As the largest capital investment proposal in British Columbia’s history, Pacific NorthWest LNG represents an unprecedented opportunity to create thousands of jobs and new economic prospects for First Nations and communities throughout our province,” said Premier Christy Clark.
Pacific NorthWest LNG received an Environmental Certificate from the Government of British Columbia in 2014.
The federal approval comes with 190 legally binding conditions, including a cap on greenhouse gas emissions. For example, Pacific NorthWest LNG Ltd. will be required to comply with mitigation measures that will minimize adverse effects on fish, fish habitat, marine mammals, wetlands, migratory birds, and human health. The decision imposes – for the first time ever – a maximum cap on annual project greenhouse gas emissions. This cap means direct greenhouse gas emissions from the project will be capped at a maximum of 4.3 Mt of CO2e per year, 900,000 tonnes less than what had initially been proposed by the proponent.
“The only way to get resources to market in the twenty-first century is if they can be done in a responsible and sustainable manner. This decision reflects this objective. With the legally binding conditions we are putting in place and with British Columbia’s commitment to increase its price on carbon in line with the Pan Canadian Framework, I am confident that we will minimize the environmental impacts of the project and ensure that it proceeds in the most sustainable manner possible,” said Environment Minister Catherine McKenna.
The Pacific NorthWest LNG Project is touted as a major opportunity to grow the economy. The project represents one of Canada’s largest resource development projects with a total capital investment of up to $36 billion when accounting for upstream natural gas development. During construction, the project will create an estimated 4500 jobs and an additional 630 direct and indirect jobs during the operation of the facility.
“Moving forward, Pacific NorthWest LNG and our shareholders will conduct a total project review over the coming months prior to announcing next steps for the project,” said Pacific NorthWest LNG president and CEO Adnan Zainal Abidin in a released statement.
