U.S. natural gas may soon find its way overseas markets via Canada, as the U.S. government granted authorization for an Australian energy company to export U.S. natural gas to Canada, and export liquefied natural gas (LNG) from Canada to overseas.
Australian energy company, Liquefied Natural Gas Limited, announced Friday that its wholly owned Bear Head LNG Corporation gained authorization from the the U.S. Department of Energy to export up to 440 billion cubic feet (12.32 billion cubic meters) per year of U.S. natural gas to Canada.
In addition, the U.S. department also approved the company to export up to eight million tonnes per year (11 billion cubic meters) of LNG from Canada to free trade agreement (FTA) countries.
While the company expects to export LNG to non‐FTA countries with another authorization from the U.S. department, John Godbold, Bear Head's project director said this is the 'first proposed Canadian LNG export facility to be recognized by the U.S. Federal Energy Regulatory Commission as an 'Approved' Canadian LNG export project.'
In an official statement, Bear Head also noted that it obtained the initial approvals from federal, provincial and local authorities to construct their LNG export project on the Strait of Canso in Nova Scotia in southeastern Canada.
Other applications of the company pending approval of Canada's National Energy Board (NEB) is to import natural gas from the U.S. and export LNG to from Canada, which may be expanded to 16.5 billion cubic meters in 2024.
A final investment decision on the LNG export project is expected to be made in 2016, while the export facility is projected to become operational in 2019.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr