NEB Approves Pacific NorthWest LNG Application For 40-Year Export Licence

The National Energy Board (NEB) has decided to issue a 40-year export licence to Pacific NorthWest LNG, subject to governor in council approval.

Pacific NorthWest first applied to the board in July 2013 for a licence authorizing the export of LNG for a term of 25 years. The board approved this application on Dec. 16, 2013. On March 31, 2014, the board notified Pacific NorthWest that governor in council approved the issuance of Licence GL-303.

Since the board issued Licence GL-303, the legislative regime has changed. The Economic Action Plan 2015 Act, which received Royal Assent on June 23, 2015, amended, in part, subsection 119.01(1.1) of the NEB Act. This amendment permits the issuance of natural gas export licences for a maximum term of 40 years, an increase from the previous maximum term of 25 years, if the gas to be exported meets the definition of natural gas set out in the National Energy Board Act Part VI (Oil and Gas) Regulations.

On Feb. 16 2016, Pacific NorthWest applied to the board pursuant to section 117 of the NEB Act for a licence to export natural gas, in the form of LNG, for a term of 40 years. The applicant, in its evidence, confirmed that the LNG exported under the licence will meet the definition of natural gas set out in the regulations.

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