Douglas Channel LNG Project |
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Small. Simple. Competitive.



In scale.



In execution.



Market access.



Today, the Douglas Channel LNG Consortium (Consortium) announced it will halt further development of the Douglas Channel LNG Project (DCLNG) due to unfavourable market conditions. The Consortium had sought to achieve a Final Investment Decision (FID) by the end of 2015; however, the worsening global energy price levels and a challenging market environment have caused the Consortium to withdraw from the project. Members of the Consortium include: AltaGas Idemitsu Joint Venture #2 Limited Partnership (AIJV#2LP), EDF Trading Limited (EDFT) and EXMAR NV (EXMAR). The Consortium intends to discharge its obligations pursuant to last year’s Companies’ Creditors Arrangement Act (CCAA) proceedings.


The Consortium would like to express its appreciation to all of the stakeholders who worked together in a common endeavour to develop the DCLNG Project under increasingly difficult global economic circumstances, including the Haisla Nation, B.C. Government, local communities, Pacific Northern Gas Ltd. (PNG), British Columbia Utilities Commission (BCUC), National Energy Board (NEB), and the Canada Border Services Agency (CBSA).


The project development milestones achieved by the Consortium and the stakeholders help to prove out the viability of floating LNG facilities in British Columbia.


The Project


The project consists of a floating LNG terminal, a floating LNG storage unit, jetty structure and mooring facilities. Ancillary services and infrastructure include a tug berth, access road, site office and metering station. A pipeline spur (approximately 8 kilometres in length) will be constructed from the terminus of the existing PNG pipeline to the site to provide natural gas to the project.


The Advantage


Located on the west side of the Douglas Channel on District Lot 99 near Kitimat, British Columbia, the project is proposed as a small scale natural gas liquefaction and export facility, with a capacity of 0.55 million tonnes per year. The project site has been secured by long-term lease agreements with the Haisla Nation for land and water tenure. Natural gas will be sourced from Western Canada and AltaGas’ processing facilities, and transported to the project site for liquefaction via Pacific Northern Gas Ltd.’s (PNG) existing pipeline system, under a 20-year transportation contract approved by the British Columbia Utilities Commission.

The Partners


The Douglas Channel LNG Consortium has full ownership and control of the Douglas Channel LNG project. Members of the Consortium include: AIJVLP (a limited partnership between AltaGas Ltd. and Idemitsu Kosan Co.,Ltd.) EDF Trading and EXMAR.

About Us


Artist illustration of proposed LNG facility

Quick Facts
  • On January 28, 2015, the Douglas Channel LNG Consortium received full ownership and control of the proposed Douglas Channel LNG project
  • Under Consortium ownership, the project is being led by creditworthy partners; AIJVLP (a limited partnership between AltaGas Ltd. and Idemitsu Kosan Co.,Ltd.) EDF Trading and EXMAR
  • The project is backed by a supportive regulatory regime in British Columbia
  • Located close to significant Canadian gas reserves, the project will provide natural gas producers in Western Canada with new market opportunities
  • Situated in sheltered ice-free waters, the small scale project will utilize existing PNG pipeline infrastructure, proven floating liquefaction technology and very short distances to target markets
  • Pacific Northern Gas has the only existing natural gas pipeline that connects to Kitimat
  • Pacific Northern Gas customers who live and work in northwestern British Columbia can expect to benefit from lower natural gas rates should the project go forward
  • Approximately eight to nine LNG shipments are projected per year

Proposed site for the Douglas Channel LNG project on District Lot 99.


The development and operation of a floating natural gas liquefaction and export facility is highly regulated and requires many permits, licences and approvals from Federal and Provincial governing bodies which include but are not limited to:

  • British Columbia Oil and Gas Commission
  • BC Safety Authority
  • District of Kitimat
  • Transport Canada
  • Forests, Lands and Natural Resource Operations
  • Department of Fisheries and Oceans

Note: Due to the small scale size of the project, review under the Provincial and Federal Environmental Assessment processes is not required.


On July 15, 2015 AltaGas DCLNG General Partner Inc. submitted the LNG Facility Permit Application to the BC Oil and Gas Commission for review.

Small. In scale.
Simple. In execution.
Competitive. Market access.