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LNG Canada Development Inc. Application for a 40-Year Licence to Export Natural Gas as Liquefied Natural Gas – Reasons for Decision

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Licence to Export – Liquefied Natural Gas


LNG Canada Development Inc. (“LNG Canada”) applied to the NEB pursuant to section 117 of the National Energy Board Act (“NEB Act”) for a licence to export natural gas in the form of liquefied natural gas (“LNG”) on the following terms:

(a) 40 year licence, starting on the date of the first export;

(b) A 6.1 percent annual tolerance, and a maximum annual export quantity of 38.056 billion cubic metres (109m3) or 1,344 billion cubic feet (bcf) of natural gas;

(c) A maximum term quantity of 1,494 109m3 (52,729 bcf) of natural gas;

(d) A point of export at the loading arm of a proposed natural gas liquefaction terminal in Kitimat, British Columbia; and

(e) An early expiration clause where the licence will expire on December 31, 2022, unless exports have commenced by that date,

(the “Export Licence”).

LNG Canada had previously applied to the NEB in 2012 for the Export Licence subject to a 25 year term, for which it received approval in February 2013 under Licence GL-300. However, due to the passage of the Economic Action Plan 2015 Act, section 119.01(1.1) of the NEB Act was amended to allow exports on a 40 year term.

The NEB approved the Export Licence as filed, and revoked Licence GL-300.

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