Nexen to examine viability of BC LNG plant

Nexen Energy, the wholly-owned subsidiary of CNOOC, has signed an agreement with the Government of British Columbia (BC), Canada, to examine the possibility of building a liquefied natural gas (LNG) plant and export terminal.

Under the agreement which is represented by the Ministry of Forests, Lands and Natural Resource Operations, Nexen and its joint venture partners including INPEX and JGC will get the exclusive right to pursue long-term access to crown land at Grassy Point near Prince Rupert.

CNOOC CEO Li Fanrong said the company could increase the value of its Canadian shale gas business with LNG exports.

"With robust financial capacity, a track record of efficient, innovative and responsible development and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity," Fanrong added.

According to Nexen Energy, financial attractiveness is dependent on acceptable cost estimates, fiscal terms and obtaining sales agreements that are priced suitably.

Going forward, Nexen Energy has a long planning process that includes a site viability review, a comprehensive environmental impact assessment and a stakeholder consultation.

Throughout the process, the company will also evaluate various steps to be taken to help the Province of British Columbia realise its goal of creating an industry that strengthens pan-Pacific trading relationships and delivers social and economic benefits, while creating jobs.

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Image: CNOOC’s Canadian shale gas holdings and proximity to Grassy Point site in BC, Canada Overview. Photo: courtesy of CNW Group/CNOOC Limited.