Act positions B.C. to regulate liquefied natural gas (LNG) in federal ports

VICTORIA – New legislation to regulate the construction, operations and permitting of LNG development on federal port lands was introduced into the B.C. legislature today by Deputy Premier and Minister of Natural Gas Development Rich Coleman.

Bill 12, the Federal Port Development Act (FPDA) will extend provincial authority and application of provincial law to LNG-related development on federal port lands. The bill creates a seamless regulatory environment that complements the 2014 amendments to the Canada Marine Act (CMA) made by the federal government.

The FPDA authorizes the Province to enter into agreements with the federal government and a federal port to administer and enforce provincial law on port lands. For example, agreements under the FPDA would detail how the BC Oil and Gas Commission would oversee development and operations of LNG facilities at a federally regulated port.

LNG facilities proposed for the Port of Prince Rupert are expected to be the first to benefit from this co-operative federal-provincial arrangement. There are currently two projects in the area: Pacific NorthWest LNG and Prince Rupert LNG.

Marine traffic and LNG shipping operations will not be affected by this bill and will continue to be led by Transport Canada under the Canada Marine Act (CMA).

Quotes:

Rich Coleman, Deputy Premier and Minister of Natural Gas Development −

“This legislation will continue to support British Columbia’s liquefied natural gas industry. Proponents will be able to invest in a facility knowing the rules that apply and provincial officials will ensure LNG operations are safe and environmentally sound.”

Quick Facts:

• Natural gas is a by-product of decaying plant and animal matter left deep underground millions of years ago. It compresses and turns into a liquid when chilled to −160° Celsius.
• Once compressed, LNG can be securely stored on a ship and safety transported overseas to markets.
• The LNG industry is a new and unique opportunity to grow the economy and create jobs in the province. LNG export operations have been occurring safely around the globe for more than 50 years. British Columbia is poised to have Canada’s first-ever LNG export operation.
• The Port of Prince Rupert is North America’s shortest trade route to Asia by up to three days. Shipping traffic currently involves handling over 23 million tonnes of goods.
• The Port of Prince Rupert supports 5,840 person years of employment and contributes $1.2 billion in total gross domestic product to British Columbia’s economy.
• Pacific Northwest LNG would create an estimated 330 long-term careers, plus approximately 300 local spinoff jobs. Construction would create up to 4,500 jobs at peak activity.
• Prince Rupert LNG could create 400 to 600 full-time positions, in addition to spinoff jobs. Construction could create as many as 3,000 jobs.

Learn More:

More information about LNG in British Columbia: www.LNGinBC.ca

More information about the BC Oil and Gas Commission: www.bcogc.ca

More information about Transport Canada: http://www.tc.gc.ca

Media Contacts:

Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617