LNG Canada Startup; PRGT Marine Amendment Approved

Highlights

• The first tanker left LNG Canada with gas and is en route to Korea. Whether this means a significant volume of gas actually flowed through Coastal GasLink remains unclear (more below)
• PRGT's marine amendment, which reroutes the pipeline from Lelu Island to Pearce Island (where Ksi Lisims LNG is to be sited), was approved by the EAO on July 5th
• Gitxsan Development Corporation is hiring 12 positions, suggesting a major contract with PRGT. They also posted on LinkedIn effectively confirming the tie between the hiring spree and the project

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Details

LNG Canada Shipment and the Question of Gas in CGL

Business media and politicians celebrated the first shipment of gas leaving LNG Canada on June 30th, but there are some indications that this milestone is not exactly the "in operation" victory it's being sold as. According to the industry analysis website Natural Gas Intelligence, Coastal GasLink "reported zero receipts from the Willow Valley connection near Dawson Creek, BC" in the first few days of LNG production in the lead-up to the arrival of the tanker. They based this claim off data from the analytics firm Wood Mackenzie. Unfortunately, at this time, we don't have direct access to this dataset to monitor CGL intake directly, but it's good to know that it exists — if you have a way of accessing a subscription to Wood Mackenzie, please be in touch.

If LNG Canada isn't receiving gas from Coastal GasLink yet, where is the gas coming from? Two answers: 1) they imported a tanker of LNG in April as part of their startup process, and 2) they may be buying gas from Pacific Northern Gas Ltd., who own an older pipeline to the region that has been operated chronically under capacity in recent years. We haven't yet been able to find evidence for 2, though if the amounts are small they may be flying under the radar.

The next LNG tanker, the Puteri Sejinjang, is in the port at Kitimat today, July 6th. We'll see if and when it departs with cargo. The next tanker isn't scheduled to arrive until August 14th, which is in line with the presumption here that, whether it's because of the plant or the pipeline, regular operation (a tanker every two days) is still not on the near-term horizon.

PRGT Marine Amendment Approved

This approval was an expected rubber stamp, but it is a rubber stamp that was needed for the project to keep moving forward. The pipeline now officially goes to Pearce Island instead of south to Prince Rupert and Lelu Island, although it's important to mention that, outrageously, the old route is still part of the certificate, meaning if Ksi Lisims falls through, the pipe could still go to a yet-to-be-imagined project in Prince Rupert.

Pearce Island is claimed by Tsimshian nations as part of their territory. Contrary to how it is commonly framed in reporting, the island as a whole is not part of the Nisga'a treaty lands. There is a tiny patch on the northern tip of Pearce Island that was designated as Nisga'a reserve land prior to the treaty, and only that reserve was included in the treaty. That former reserve is the proposed location for the on-shore components of the floating Ksi Lisims LNG terminal.

There is an interesting shift in the language on "consultation" in the EAO's decision on this amendment: they describe it as "consensus-seeking" and then proceed to describe how every single Tsimshian First Nation consulted "stated consensus had not been reached on the recommendation to approve the Amendment Application." Apparently, that's supposed to be consistent with DRIPA!

GDC Pipeline Work

Not much to add here, but it's worth including the GDC LinkedIn post just to confirm what people have reported from on the ground observation in the Kispiox Valley:

It is very likely that this kind of work—measuring powerline heights, assessing road conditions, that sort of thing—is now happening up and down the pipeline right-of-way. If you know anyone who might be able to report on goings-on in the upstream reaches of the pipeline, towards northeast BC, please forward them this newsletter.