GasNorth Energy of Canada has been granted permission from the British Columbia Oil and Gas Commission to proceed with construction of a small-scale natural gas liquefaction facility near Fort Nelson in the northeast of the Pacific Coast province.
The facility will use locally produced natural gas and will supply existing and emerging markets in the Yukon and Northwest Territories.
With an initial capacity of 50,000 gallons per day, the facility is designed to expand as the market continues to develop.
“This is a very positive economic opportunity for the Fort Nelson First Nation and the Northern Rockies Regional Municipality,” said GasNorth President Bob Fedderly.
“This will help position Fort Nelson as an energy supplier to the North, making use of local resources to create local jobs,” added Fedderly.
Major companies such as Petronas of Malaysia and others have met stern regulatory opposition for liquefaction plant permits, though these were on a much larger scale and for exports.
Mitigation measures demanded for larger liquefaction and export facility mostly made them uneconomic to procced with and develop.
GasNorth said its next steps would be to work with partners on equipment procurement and site development.
“It's expected first shipments could happen in early 2021,” said the company.
GasNorth explained that local resources would be used as much as possible and the Fort Nelson First Nation will be participating as an equity partner.