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Steelhead receives regulatory approval to export LNG from two proposed projects in Canada

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Canadian company Steelhead has received approval from the National Energy Board (NEB) for its applications for five licences to export liquefied natural gas (LNG) from its two proposed LNG projects on Vancouver Island.

Following the approval, the company can now export up to 30 million tonnes of LNG a year for 25 years from its projects.

Under one licence, the company will export up to six million tonnes of LNG from the proposed floating liquefaction and export LNG terminal Malahat LNG located next to Malahat Nation land, 8km south of Mill Bay in British Columbia.

The remaining four licences to export up to 24 million tonnes of LNG are allocated to the proposed LNG project.

The project is being proposed to be developed by the company with the Huu-ay-aht First Nations on Huu-ay-aht land at Sarita Bay.

Steelhead LNG CEO Nigel Kuzemko said: “We’ve made tremendous strides in progressing our projects over the past year, including our announcement of Malahat LNG, our agreement with Williams subsidiary Northwest Pipeline to commence with the design and approval process for a proposed natural gas pipeline to Vancouver Island, and our agreement with Höegh LNG, for Höegh LNG and Bechtel to perform the pre-front end engineering and design work for Malahat LNG.”

The proposed Malahat LNG project was announced by Steelhead and the Malahat Nation on 20 August following completion of a mutual benefits agreement and long-term lease.

The project will include floating liquefaction facilities that would be moored to the shoreline and supported by minor land-based facilities.

Malahat Nation CEO Lawrence Lewis said: “Today’s approval is exciting news, as it represents one of many steps in the process ahead for Malahat LNG and the proposed Steelhead LNG facilities on Malahat Nation lands.”

In September, Steelhead signed an agreement pursuant to which Höegh LNG and Bechtel were supposed to perform the pre-front end engineering and design work for the Malahat LNG project.

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