Douglas Channel LNG
Project consists of:
A barge-based liquefaction plant to convert natural gas to liquefied natural gas (LNG)
A small LNG buffer tank, electrical substation, and other support facilities on land adjacent to the LNG barge
A new LNG jetty and berth with loading facilities
Infrastructure to connect existing gas pipeline, electrical power, and roads to the project site
Safety and sustainability are reflected in the basis of design. Key elements of plant design are:
- Safe, proven, compact gas treating and LNG processes.
- A liquefaction plant that relies upon air coolers, eliminating cold water intake and warm water discharge.
- A fully electrified LNG plant that does not need to burn gas to generate electrical power, relying instead upon a secure source of high voltage hydro-electric power from BC Hydro.
- A jetty, designed to withstand stress from foul weather and seas, constructed near the shoreline to provide a safe and secure mooring structure for LNG delivery vessels.
- Minimal footprint for upland facilities, comprising plant vent/flare, small LNG buffer tank, equipment and maintenance building, and high-voltage substation.
- All components of the Project (i.e., access roads, powerlines, pipelines, barge foundation, and berth facilities) will be constructed on privately owned lands. Easement and right-of-way agreements will be acquired for the pipelines, 287kV electrical transmission lines, and the access roads, all of which will be less than 10km in total length.
Douglas Channel Energy Partnership (DCEP) will design, secure requisite permits and project financing, and contract for the engineering, procurement, construction and operation of the facilities.
The barge-based liquefaction plant will utilize an industry proven LNG process and be largely self-contained. The plant will be fabricated and assembled in a shipyard, then towed to its permanent location in Douglas Channel where it will be grounded on a prepared foundation and interconnected to support systems and the berth. A small LNG buffer tank, electrical substation, and other support facilities will be located on land adjacent to the liquifaction plant.
The liquefaction plant is designed to convert up to 125 MMSCFD (million standard cubic feet per day) of natural gas into approximately 900,000 tonnes per annum of LNG. Initial LNG production will be approximately 700,000 tonnes per annum; this is based on the current transportation agreement and estimates of available pipeline capacity from the Pacific Nothern Gas.
The small scale Douglas Channel Energy Partnership (DCEP) liquefied natural gas facility will be located in British Columbia on the west bank of the Douglas Channel, south of the Half Moon Bay Marina, within the District of Kitimat and the asserted traditional territory of the Haisla Nation. The site is approximately 10 km southwest of Kitimat and 7 km north of Bees Cove Indian Reserve 6 (Bish Cove), on lands and within a water lot that are both owned by Rio Tinto Alcan (RTA). The lands are designated Industrial, which is defined in the District of Kitimat’s Official Community Plan as including port development activities. DCEP is in discussions with RTA for land, water, and road use.
Several key factors drive the selection of the location near the Port of Kitimat:
- Availability of Pipeline Capacity – The location provides for straightforward tie-in to the required natural gas transporation capacity to bring natural gas from Spectra’s (Westcoast Energy’s) mainline (via PNG) to the area around the Port of Kitimat.
- Limited Environmental Effect – The location, entirely within the District of Kitimat Industrial Zone, facilitates a project with minimal environmental impact. Douglas Channel Energy Partners will develop a screening report as part of the requirements of the Canadian Environmental Assessment Act which will analyze the potential project environmental effects and mitigation required.
- Access to deep water – The location provides deep-water access at the jetty, allowing safe access by LNG delivery vessels.
- Access to hydropower – The location allows the Project to run entirely on shore-based power from BC Hydro. This clean source of energy reduces the cost of liquefaction and increases the potential level of production.
The proposed timeline for the Douglas Channel LNG project is summarized below:
|Environmental Assessment and Permitting||Through Q4 2011|
|Key Contracts and Agreements||Through Q3 2011|
|FEED Engineering Activity||Through Q4 2011|
|Consultation||Through initial facility operations|
|Design, Construct, Commision||Q1 2012 through Q4 2013|
|Initial Facility Commercial Operations||Q4 2013 through Q1 2014|