The license is for a maximum term amount of 442.68 109 m3. The approved export points are existing natural gas pipelines that cross the Canada/US border near Kingsgate and Huntingdon, British Columbia.
Issuance of the licence to export natural gas is subject to the approval of the Governor in Council (GiC).
Recent developments in gas production technology have resulted in a significant increase in the Canadian gas resource base and North American gas supply. One of the major impacts of this increase is lower demand for Canadian gas in traditional gas markets in the US and eastern Canada. As a result, the Canadian gas industry is seeking to access overseas gas markets.
When evaluating natural gas and LNG export licence applications, the Board considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada. Each application is assessed on its own merits. The Board determined that the quantity of gas proposed to be exported is surplus to Canadian requirements.
The board is satisfied that the gas resource base in Canada, as well as North America, is large and can accommodate reasonably foreseeable Canadian demand, this natural gas export application, and a potential increase in demand. The Canadian natural gas market will continue to respond appropriately to changes in supply and demand.
The Board continuously monitors the Canadian and North American natural gas market. The Board has technical expertise in gas market supply and demand fundamentals and geological resource assessment.
