Pipeline receives federal approval

March 17, 2009 | by Gordon Hoekstra, Prince George Citizen

A federal environmental review has given the green light to a proposed $1.1-billion natural gas pipeline project between Summit Lake and Kitimat.

In its decision, the federal government said that after taking into consideration its screening assessment, and taking into account the implementation of appropriate mitigation measures, the project is not likely to cause significant adverse environmental affects.

The Canadian Environmental Assessment Agency review -- a screening -- is the lowest level that can be conducted federally. Initially, Ottawa had considered a comprehensive study, which includes mandatory public input, but downgraded the review to a screening.

Pacific Trail Pipelines Ltd. Partnership -- a joint venture between Pacific Northern Gas and Kitimat LNG -- said the decision marks the next major milestone in the development of the project.

The pipeline already received the OK from the province's environmental assessment last summer.

"We are very pleased to have these major environmental approval processes completed successfully and look forward to delivering the many potential benefits this project would bring to our existing customers, to First Nations located in the Summit Lake to Kitimat area and to our shareholders," said Pacific Northern Gas official Greg Weeres.

The pipeline would create construction jobs but no permanent jobs as Pacific Northern Gas already has staff operating its existing natural gas pipeline in northern B.C.

The 463-kilomtre pipeline is meant to bring natural gas to Kitimat for export, and is dependent on a proposed $3-billion liquefied natural gas export terminal being built. The proposed LNG terminal -- a Kitimat LNG project -- also already has environmental approval from the federal and provincial governments.

Recently, Mitsubishi Corp. agreed to take 30 per cent of the capacity of Kitimat LNG's proposed terminal, as well as acquire a minority stake in the project.

Natural gas carried from Western Canada will be super-cooled at the terminal in Kitimat before being transported on specially-bulit ships destined for the Pacific Rim.

Pacific Northern Gas officials have said they have some time to build the pipeline because the liquefied natural gas plant will take 3-1/2 years to build. Construction has not started on the plant.

The pipeline route will follow the existing right of way of the Pacific Northern Gas pipeline between Summit Lake and Endako, just west of Fraser Lake. From there, the pipeline will take a direct route to Kitimat.

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