B.C. conditionally approves Royal Dutch Shell LNG project in Kitimat

BRENT JANG

VANCOUVER — The Globe and Mail

Published Wednesday, Jun. 17, 2015 5:07PM EDT

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The B.C. government has conditionally approved a liquefied natural gas project led by Royal Dutch Shell PLC.

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Environment Minister Mary Polak and Natural Gas Development Minister Rich Coleman attached 24 conditions in issuing an environmental assessment certificate for the Shell-led LNG Canada joint venture in Kitimat in northwestern British Columbia.

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“Many of the legally binding conditions were informed by consultation with aboriginal groups and include requirements for the continued engagement of aboriginal groups, programs to support aboriginal employment,” the B.C. Environment Ministry said Wednesday. “The LNG Canada export terminal will require various federal, provincial and local government permits to proceed.”.

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LNG Canada selected industrial property on the northern end of Douglas Channel for the Kitimat terminal.

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“LNG Canada must ensure the project is economically viable and meet several significant milestones related to gas supply, engineering and cost estimates, supply of labour and regulatory approval prior to making a final investment decision,” LNG Canada external affairs director Susannah Pierce said in a statement.

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Federal Environment Minister Leona Aglukkaq also issued a release, saying the project underwent a thorough science-based environmental review provincially in a streamlined process. “This decision strengthens Canada’s position as a world leader in responsible resource development and will diversify Canadian energy export markets by sending clean-burning natural gas to Asia,” Ms. Aglukkaq said.

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Next steps for the Shell-led group include federal regulatory approvals, but the main environmental hurdle of obtaining the B.C. certificate has been cleared, industry experts say. In 2013, the B.C. Environmental Assessment Office and the Canadian Environmental Assessment Agency agreed to an expedited process.