Project decision still not final.
VICTORIA — BC’s minister of natural gas development says a liquefied natural gas plant developer has committed to powering part of its proposed operations with electricity.
Rich Coleman said the proposed LNG Canada project near Kitimat will connect to BC Hydro’s grid and use electricity to power part of its needs, but natural gas turbines will drive the compressors to chill natural gas into liquid form.
LNG Canada has yet to make a final investment decision on whether it will proceed with the project, located near Kitimat.
The agreement between the venture company and BC Hydro is the first such power deal signed in the province with an LNG proponent.
BC Hydro president Jessica McDonald said the agreement provides greater certainty on future power needs and delivers long-term benefits for customers.
Coleman and Energy Minister Bill Bennett also announced the rates LNG companies will be charged to connect to BC Hydro’s electrical grid.
The energy and demand charge for LNG facilities in 2014 will be $83.02 per megawatt hour, before applicable taxes, the ministers said in a joint statement.
The average rate paid in 2014 by other industrial customers in the province is $54.34/MWh, they said.
Coleman and Bennett said the LNG rate ensures that customers cover the full cost of the power they need.
© 2014 The Canadian Press