Canada's National Energy Board approved the application of energy company, Woodside Energy Holdings Pty Ltd., on Thursday to export liquefied natural gas.
Woodside Energy Holdings Pty Ltd. was granted a natural gas export license for 25 years, for a maximum quantity of 807 billion cubic meters.
The export point will be the Grassy Point LNG facility of Woodside Energy on the west coast of British Columbia near the Pacific Ocean.
Upon completion, Woodside's project is planned to produce between 6 to 15 million tonnes per annum (8 - 10 billion cubic meters per year) of LNG, and later to increase overall capacity up to 20 million tonnes per annum (27 billion cubic meters per year) of LNG.
The early estimated capital cost of the project is between $10-15 billion (around US$8-12 billion), according to company website.
Canada has 18 proposed projects to export LNG, however so far no investment decision has been finalized on any project because of the uncertainty of tax and environmental laws in the country.
National Energy Board, which is the federal regulator of Canada's energy industry, stated that the quantity of natural gas to be exported out of the country must be surplus to Canadian requirements.
Canada's proved natural gas reserves are estimated to be 67 trillion cubic feet (two trillion cubic meters) while it has an estimated technically recoverable shale gas resources of 573 trillion cubic feet (17 trillion cubic meters), according to the U.S. agency
According to the U.S.' Energy Information Administration, Canada is the fourth-largest exporter of natural gas - after Russia, Qatar, and Norway - while almost all of its natural gas exports are sent to the U.S. via pipelines.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr