The Globe and Mail - 16.10.2019

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WEDNESDAY,OCTOBER16,2019| THEGLOBEANDMAILO REPORTONBUSINESS| B3


British Columbia’s environmen-
tal regulator has asked a liquefied
natural gas venture led byChev-
ron Corp.to detail its planned
B.C. terminal’s impact on climate
change.
The B.C. Environmental As-
sessment Office said in a recent
regulatory filing that Chevron-led
Kitimat LNG plans to calculate its
greenhouse gas (GHG) emissions
from a regional and global per-
spective.
Kitimat LNG helped develop a
192-page draft document based
on guidelines provided by the
B.C. regulator, kicking off a public
consultation process.
Environmental groups say it is
crucial for British Columbia to re-
duce GHG emissions within the
province’s boundaries. But the
draft document released by the
B.C. regulator, dated Oct. 7, opens
the door for a discussion on tak-
ing a worldwide view on GHGs.
“Spatial boundaries will not be
defined, as GHG and climate
change are, by nature, both re-
gional and global,” according to
the regulatory filing.
Supporters of B.C.’s fledgling
LNG industry say exports of the
fuel would displace coal at power
plants in Asia and therefore help
reduce air pollution overseas.
California-based Chevron co-
owns Kitimat LNG with Austra-
lia’s Woodside Petroleum Ltd.,
with the two partners hoping to
build their much-delayed LNG ex-
port project at Bish Cove, located
in the Kitimat region in north-
western British Columbia.
The Chevron-led venture plans
to use technology powered by
electric motors to supercool nat-
ural gas into liquid form, relying
on hydroelectricity from BC Hy-
dro instead of using turbines dri-
ven by natural gas.


The provincial regulator, also
known as the EAO, will be hold-
ing an open house in Kitimat on
Wednesday to provide informa-
tion to local residents, who have
until Nov. 6 to submit comments
on Kitimat LNG’s plans. Another
open house will be held in nearby
Terrace on Thursday.
Besides seeking information
on anticipated GHG emissions,
the EAO said it has also asked Kiti-
mat LNG for details on a range of
economic, social and health is-
sues, as well as Indigenous con-
sultation.
Following final amendments,
the current process would then
pave the way for Kitimat LNG to
file a detailed project application
to the EAO for review.
The emphasis on the effects of
climate change underscores the
changes to regulatory assess-
ments since August, when the
federal Impact Assessment Act
came into force. The B.C. regula-
tor is leading the review in collab-
oration with the federal Impact
Assessment Agency, which until
August had been named the Can-

adian Environmental Assess-
ment Agency.
The federalgovernment said it
revamped the review process in
an effort to restore public trust in
Ottawa’s approval of controver-
sial resource projects. New re-
views must place a greater em-
phasis than in the past on factors
such as social effects, Indigenous
rights and whether a project is
consistent with Canada’s com-
mitments to battle climate
change.
B.C. is slated to toughen its pro-
vincial assessment rules, with Bill
51 expected to come into force by
early 2020, environmental law-
yers say.
LNG Canada, led by Royal
Dutch Shell PLC, started con-
struction of an $18-billion export
terminal in October, 2018, on a Ki-
timat industrial site located on
the Haisla Nation’s traditional
territory. By contrast, Kitimat
LNG’s site is at Bish Cove, located
on the Haisla’s reserve land near
the community of Kitimat.
In July, Kitimat LNG said in a
186-page project description to

B.C. and federal environmental
regulators that its facility “will be
one of the lowest GHG emitters of
its type. An electric-drive concept
also means that significant in-
creases to liquefaction capacity
can be achieved with a negligible
increase in GHG emissions.”
Shell-led LNG Canada has
vowed to operate at 0.15 carbon-
dioxide equivalent tonnes for
each tonne of LNG produced, a
level below British Columbia’s
limit of 0.16 for emissions intensi-
ty. LNG Canada will use natural
gas in the liquefaction process in
which high-efficiency turbines
supercool gas into liquid form,
while using hydroelectricity for a
supporting role, including auxil-
iary power.
Kitimat LNG has not spelled
out its precise target yet, but in its
July project description, it includ-
ed a chart that suggested it might
be able to run at less than half of
the 0.16 limit for emissions inten-
sity.

CHEVRON(CVX)
CLOSE:US$116.31,UP13USCENTS

B.C.regulatorasksKitimatLNGtodetailclima teimpact


Environmental


AssessmentOfficealso


seekspublicfeedback


onChevron-ledproject


BRENTJANGVANCOUVER


TheKitimatLNGsiteis
seeninBishCove,B.C.,
onOct.7.Theprovince’s
Environmental
AssessmentOfficesaidin
arecentregulatoryfiling
thatChevron-ledKitimat
LNGplanstocalculate
itsgreenhousegas
emissionsfromaregional
andglobalperspective.
AMBERBRACKEN/
THEGLOBEANDMAIL
Free download pdf