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Quicksilver gets LNG export licence

The licence is good for 25 years and allows Quicksilver to export natural gas

There’s now one less hurdle for Quicksilver Resources Canada to go through in its attempt to export Liquified Natural Gas (LNG) from its Discovery LNG site in Campbell River.

Last week, Quicksilver’s application for an export licence was approved by the National Energy Board.

The licence is good for 25 years and allows Quicksilver to export natural gas with a maximum term quantity of 733 billion cubic metres.

The board, in coming to its decision, considered that the amount of LNG to be exported by Quicksilver would not be a detriment to the country’s needs.

“The NEB (National Energy Board) has determined that the quantity of gas proposed to be exported by Quicksilver is surplus to Canadian needs,” according to a release. “The NEB is satisfied that Canada’s gas resource base, and the overall gas resource base in North America is large and can accommodate reasonably foreseeable Canadian demand. This demand would include the LNG exports proposed by Quicksilver as well as a plausible potential increase in Canadian demand.”

The licence will allow Quicksilver to export natural gas from its proposed natural gas liquefaction terminal at the former Elk Falls mill site.

Quicksilver purchased the property in May of 2013 from Catalyst Paper for $8.6 million.

It intends to export LNG to Pacific Rim markets in Asia, starting as early as 2021.

Project plans for Discovery LNG involve transporting processed natural gas to the Campbell River site through a yet-to-be determined transmission method from Quicksilver’s sites in the Horn River Basin in northeastern B.C.

The gas would then be converted at the Discovery LNG site to a liquid form through refrigeration.

The gas, in its liquid form, would then be exported to LNG receiving terminals in Asia.

But one big hurdle remains.

The 10-inch gas pipeline that supplied the former Catalyst mill is not long enough for Quicksilver which requires a 36-inch pipeline to the project.

Quicksilver has been searching for an investment partner, likely a company from Asia, to assist with the pipeline.

The company also proposes to undergo a comprehensive assessment and impact study to ensure the project has no significant effect on the environment.

Quicksilver Resources Canada is headquartered in Calgary and is controlled by holding company Quicksilver Resources which is based out of Fort Worth, Texas.