New U.S. LNG terminal near northwestern B.C. town proposed

New U.S. LNG terminal near northwestern B.C. town proposed

AlaskCAN International LNG wants terminal just over Canadian border, but using B.C gas

  • Jan. 24, 2020 6:00 a.m.

A new company called AlaskCAN International LNG has proposed to build a $12 billion natural gas export terminal near the northern B.C. town of Prince Rupert, just over the Canadian border in Alaskan waters.

If everything goes according to AlaskCAN’s plan, the plant could be operational by 2027 or 2028.

The proposal outlines a floating terminal between Wales Island B.C. and Sitklan Island in Alaska, within the Tongass Passage to produce and export up to 12 million metric tonnes per year of liquefied natural gas (LNG)

There are those however, who say another LNG facility in the region is not required.

Larry Persily, professor at the University of Alaska Anchorage has pursued the global gas markets for decades. He said the market is adequately supplied, especially with the Kitimat, B.C. LNG plant currently under construction and located just 70 miles (112 kilometres) away from the AlaskCAN proposed site.

He added that a new facility that would attract massive gas tankers to the area may not be amenable to local community members.

“Fishermen are not big on large tankers going through their fishing grounds,” Persily said. “Fishermen may say, it’s just gas — not oil, but then they realize 15 tankers per month going through their fishing grounds is not benign.”

READ MORE: Chinese LNG distributor proposes LNG processing facility in Terrace

Byng Giraud, president of AlaskaCAN LNG, said his company is investigating sites for a floating liquefaction plant, just over the B.C. border in southeast Alaska.

The plan is to take up to 12 million metric tonnes per year of LNG and ship it to Asian markets. This will require a liquefaction platform attached to a small island, said Giraud in a recent interview with Alaska’s Energy Desk.

A liquefaction plant is needed to cool natural gas down to the point of condensation so it’s a liquid for shipping purposes.

Giraud said, his company hopes to capitalize on the natural gas trapped in northern B.C. “With the shale gas revolutions, directional drilling and all those technological advances of the past 15 years, we’re awash with gas, so that gas is looking for a market, ” he said.

It would be almost as easy to ship the gas from the Kitimat LNG Canada terminal, which is already under construction, said Persily. The $12 billion early estimates of the project cost do not include the 12-mile (19 kilometres) pipeline that would need to be constructed. Persily said the economics just don’t make sense. The added cost of the pipeline construction will bring the cost of the project up to around $20 billion. He said it would make more sense for the terminal in Kitimat to proceed to phase 2, than to build a whole new site.

READ MORE: How four changes to the Fisheries Act may affect the North Coast

“We like the Alaska side, partially because it makes the pipeline shorter – saves about 60 kilometres. And Alaska has a fairly robust permitting process,” Giraud said.

Persily said he’s not sure he agrees. “I’m not sure regulation is easier, but it’s that regulators have more experience. It’s not regulation issues that affect projects from proceeding. It’s environmental, economics and First Nations rights”, Persily said, “At some point fishermen are going to be concerned and not want tankers in their waters.”

Little information could be found on AlaskCAN International LNG. Giraud the president is based in Vancouver and until July, was a top executive in charge of business development for Woodfibre LNG. Another of his previous positions from 2010 was as vice president of corporate affairs for Imperial Metals, who own the Mount Polley Mine, responsible for what some called the environmental catastrophe, in the Williams Lake/Cariboo Region of B.C. in Aug. 2014.


K-J Millar | Journalist
Send K-J email
Like the The Northern View on Facebook
Follow us on Twitter

LNGPacific NorthWest LNG

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A new public space build on a sediment deposit in the Sicamous Narrows is a possible part of a flood mitigation barrier outlined in a recent report given to Sicamous’ council. (Kerr Wood Leidal Image)
Sicamous flood protection plan, public walkway come with hefty price tag

New barrier against higher seasonal lake levels called a proactive approach by mayor

Movie crews filmed a holiday parade in Summerland in July. The parade, filmed on Main Street in Summerland, is for the movie, The Christmas Yule Blog. (John Arendt - Summerland Review)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

The Armstrong Green Space Society is calling for the preservation of the Royal York Golf Course, which may be in jeopardy pending an application to use the land for a major housing development. (File photo)
Armstrong group calls on council to spare local golf course from housing development

The Armstrong Green Space Society was formed in 2019 after word of the development surfaced

Vicki Proulx, executive director of the Vernon Winter Carnival Society, stands beneath a lights display the society lit up in Spirit Square Nov. 27, by way of announcing it will be taking over the 2021 downtown light-up event. (Brendan Shykora - Morning Star)
Vernon Winter Carnival Society lights up downtown square

The society announced it will be taking over next year’s downtown light-up event

Parents are urged to be on alert after a potential child abduction attempt took place near Armstrong Elementary School Friday, Nov. 27, 2020. (amsas/neden photo)
Possible child abduction attempt at Armstrong Elementary School prompts warning

A letter from the school’s principal urges parents to be on high alert

(Dave Landine/Facebook)
VIDEO: Dashcam captures head-on crash between snowplow and truck on northern B.C. highway

Driver posted to social media that he walked away largely unscathed

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

(Randy Mills/@poohbah431111 - Twitter)
Motorcyclist rushed to Kelowna General Hospital after collision

The collision occurred around 7:15 p.m. at the intersection of Highway 33 and Gerstmar Road

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

Former Vancouver Canucks goaltender Richard Brodeur discussing his paintings with the executive director of the Arts Council of the Central Okanagan Kirsteen McCulloch. (Contributed)
Former Canucks goalie King Richard’s art displayed at Kelowna gallery

Richard Brodeur starred in the Vancouver Canucks’ 1982 Stanley Cup run

Menno Place. (Google Street View image.)
B.C. care home looks to hire residents’ family members amid COVID-19-related staff shortage

Family would get paid as temporary workers, while having chance to see loved ones while wearing PPE

A confirmed case of COVID-19 at Vernon’s Silver Star Elementary School has been reported. (Google Maps)
COVID case confirmed at Okanagan elementary school

Member of Silver Star Elementary community in Vernon self-isolating at home; parents alerted Nov. 28

Most Read