British Columbia is home to significant natural gas resources that greatly exceed the domestic need. Historically, B.C. has sold surplus natural gas to other jurisdictions in Canada and the United States. In recent years, increased natural gas production in the U.S. has decreased the demand and price of B.C.’s natural gas. However, key Asian markets including Japan, Taiwan and South Korea need to find new natural gas providers to meet their current and growing needs as they transition from higher-emitting fuel sources.
Liquefied natural gas (LNG) is natural gas cooled to the point at which gas condenses to a liquid. When natural gas is converted to liquid, its volume decreases significantly, allowing it to be transported efficiently over greater distances. LNG is non-corrosive, non-toxic, non-pressurized, will not pollute land or water resources; and is the cleanest-burning hydrocarbon available.
The Pacific NorthWest LNG facility represents a $9 billion to $11 billion investment. Pacific NorthWest LNG has contracted with Canadian company TransCanada Pipeline Limited to design, construct and operate a new natural gas pipeline that will transport natural gas from Progress assets in the Montney to the facility.