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How this man’s legal challenge could stall LNG Canada

Michael Sawyer

How this man’s legal challenge could stall LNG Canada

A massive new fracked gas export plant in Kitimat may have just received the go-ahead, but a Smithers resident is arguing a pipeline vital to the project should have faced a federal review — and he’s won before

LNG Canada has announced that the international consortium is ready to proceed with Canada’s largest ever infrastructure project, but, in a David and Goliath scenario, a challenge by a Smithers environmental consultant is aiming to temporarily derail or delay the $40-billion megaproject.

Michael Sawyer is arguing that the Coastal GasLink Project, a 675-kilometre pipeline running from Dawson Creek to Kitimat, should have faced a federal review by the National Energy Board instead of relying on provincial approval.

Although the $4.7-billion pipeline is set to be built entirely within B.C. — which would usually put it under the jurisdiction of the province — the pipeline, which would supply the LNG Canada export terminal in Kitimat, connects to an existing pipeline system that is federally regulated.

Also, Coastal GasLink Pipeline Ltd. is a wholly owned subsidiary of TransCanada Pipeline Ltd., which means under the Constitution Act the pipeline is within federal jurisdiction and should be regulated by the National Energy Board, Sawyer says in an application to the board.

Sawyer-Challenge-CoastalGasLinkProject-NEB by The Narwhal on Scribd

“A pipeline that crosses international boundaries or provincial boundaries would normally be federally regulated,” Sawyer told The Narwhal, pointing to a 1998 Supreme Court decision that said if a provincial pipeline is “functionally integrated” with an existing federally regulated line, it becomes an extension of the federal line.

…click on the above link to read the rest of the article…

B.C. LNG: AltaGas shelves Douglas Channel project near Kitimat

B.C. LNG: AltaGas shelves Douglas Channel project near Kitimat

Company says decision due to poor economic conditions and worsening global energy prices.

Another LNG project in B.C. has been shelved in response to falling global energy prices.

Another LNG project in B.C. has been shelved in response to falling global energy prices. (CBC)

In another blow to B.C.’s nascent liquefied natural gas industry, AltaGas Ltd. is shelving the development of its Douglas Channel LNG plant near Kitimat.

The decision to halt work on the project was blamed on poor economic conditions and worsening global energy prices.

“We believe the project could deliver LNG to Japan at very competitive prices,” AltaGas CEO David Cornhill said Thursday.

“However, without a meaningful offtake agreement the consortium can no longer continue the development of the project.”

AltaGas, along with its global partners in the project, had been aiming for the project near Kitimat, B.C., to begin exporting LNG in 2018.

The announcement comes just weeks after Shell Canada announced it was postponing its final investment decision (FID) on their huge LNG terminal proposal in Kitimat until the end of the year.

Significant decisions to come

Minister of Natural Gas Development Rich Coleman said today’s news does not mean B.C.’s LNG industry is in trouble.

“I don’t think so,” Coleman said Thursday.

“I think we’ve got some significant FID discussions taking place in the next 60-90 days on a couple of projects

“Obviously there’s been two that have told us they want to get to their FID by end of this year…and they’re much larger. This was a very small project.”

The Douglas Channel project is one of the smallest of the more than 20 proposed LNG projects in Canada with the potential to export about 2.4 billion cubic metres of natural gas per year, compared with 33 billion cubic metres for Shell’s LNG Canada project.

…click on the above link to read the rest of the article…

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