Texada target of LNG plan
WestPac to supply natural gas to provincial markets and electrical power that will connect to the existing BC Hydro power grid
A $2 billion combined liquefied natural gas (LNG) import terminal and natural gas-fired generation facility is being proposed for Texada Island.
WestPac LNG Corporation announced its plans Tuesday.
A $2 billion combined liquefied natural gas (LNG) import terminal and natural gas-fired generation facility is being proposed for Texada Island.
WestPac LNG Corporation announced its plans Tuesday.
The company has acquired a long-term 46.5-hectare lease at Kiddie Point, located at the north end of Texada, next to an industrial area that has a deepwater berth for vessels.
In-depth analysis of the terminal and power generation facility will be undertaken through detailed environmental assessment and regulatory reviews.
WestPac chief operating office Mark Butler told the Peak yesterday the company representatives are "very much" looking forward to getting to know people during the regulatory process ahead. "We invite them to participate."
Powell River Regional District Area D (Texada Island) director Dave Murphy described the project as "so big, it's almost scary."
Murphy said when he was first introduced to WestPac's plans last year, they were focused on Prince Rupert, with Texada considered part of the secondary development, along with other areas. It was a different scenario from what was presented on Monday when company representatives travelled to Texada meet with him, island improvement area representatives and local businesses.
Asked why the change in focus from Prince Rupert to Texada Island, Butler explained there were two reasons-increasing infrastructure costs and proximity to existing pipelines.
Two 15-storey tanks would have had to be constructed at Prince Rupert using nickel steel. At an operating temperature of -160°C, steel becomes very brittle and the addition of nickel gives it needed elasticity. With the price of nickel doubling in the last 24 months, infrastructure costs more than doubled for the north-coast community.
"Our board of directors was looking at building three tanks [including one on Texada] and two jetties. They started asking if consolidation and elimination of duplication could happen if there was only one location, instead of two."
While the depth of the Prince Rupert port was a benefit, it was not close to a pipeline, Butler explained. Texada not only has proximity to a pipeline, the Cheekye-Dunsmuir power line is only 18 kilometres from the proposed plant site and is closer to the primary market for WestPac.
A major benefit of a new LNG plant, Butler said, is that it will allow BC Hydro to decommission its Burrard Thermal power generator. "It operates at 32-per-cent efficiency and with its aging equipment rated for a capacity of 900 megawatts, it can only produce 250-300 megawatts.
"It's so inefficient, it's the most expensive power in BC," Butler added. "It's belching out significant amounts of greenhouse gases and nitrous oxide."
Butler noted that BC Hydro has been trying to close the generator for more than seven years but has not been able to find an alternative.
Burrard is required at peak demand times, and without that power, "inefficient as it may be, there would be brownouts."
New turbine technology that his company will use provides up to 70-per-cent efficiency and scrubbers take care of the nitrous oxide.
"We'll create an enabling opportunity for BC Hydro by having clean-burning, gas- fired generation on Texada Island and provide power directly into Cheekye."
Murphy wants to know "what's in it for Texada? [Island] residents still have a bad taste in their mouths" regarding Terasen Gas. They had expected to have access to natural gas when the pipeline across the island was proposed. "They never did get it."
WestPac will have to satisfy provincial and federal government regulatory bodies as well as the community of Texada, Murphy said. "It will be an uphill battle, not an easy thing."
He added that he had not heard much from islanders about the project, but expected more response following Tuesday's announcement. Open houses and perhaps a public hearing will likely be held to get feedback, Murphy said. "They need to get the facts out, looking at the safety of LNG; the visual impact of the plant. Instead of cruise ships passing by, there will be LNG freighters, and there will be towers to move power from the site."
On the other hand, Murphy said consideration needs to be given to the potential for jobs, both during the construction phase and after, that would be "a boon to the community. Our youth are looking for opportunity and jobs. We'll see how it unfolds. If the company gets all its cards in place and gets approval from Texada, so be it."
WestPac's proposal will provide "real direct benefits, growth and jobs, to the people of Texada Island and Powell River," said Butler.
Co-owner of the Texada Island Inn, Dan Devita, said he thinks the project is great. "There's a two-year process to go through to see if it's feasible and if the people of Texada accept it. We live on an industrial island and this is a unique opportunity for Texada and the district."
Devita added, "We're down to 53 kids in our school. Our population is static and we will continue to lose services if that continues."
Scott Randolph, Powell River Regional Economic Development Society manager, has been working closely with the company since November. He said he has found them to be "very sensitive to concerns and issues," and expects them to continue to be. "WestPac is a very credible organization that wants to ensure they get things done right.
"At the end of the day," said Randolph, "this is a huge development for the community if it moves forward, a major development in our region of up to two billion dollars."
He added that, "we have to be cautious as there are lots of steps to go through yet."
Tla'Amin (Sliammon) Chief Councillor Walter Paul was out of town and not available for comment prior to press time.
Timeline for proposed LNG facility
Summer 2007
WestPac begins consultation with community and First Nations.
Fall 2007
WestPac files project description with BC Environmental Assessment Office (EAO) and the Canadian Environmental Assessment Agency.
EAO to confirm the scope of the environmental assessment through a technical working group of provincial, federal, local government and First Nations representatives.
Fall 2008
WestPac to file a final environmental assessment.
Fall 2009
Environmental process to be completed.
Provincial and federal regulators make their decisions regarding the project.
Construction planned to start. Estimated completion in three years.
2013
Terminal and facility come into service.
In-depth analysis of the terminal and power generation facility will be undertaken through detailed environmental assessment and regulatory reviews.
WestPac chief operating office Mark Butler told the Peak yesterday the company representatives are "very much" looking forward to getting to know people during the regulatory process ahead. "We invite them to participate."
Powell River Regional District Area D (Texada Island) director Dave Murphy described the project as "so big, it's almost scary."
Murphy said when he was first introduced to WestPac's plans last year, they were focused on Prince Rupert, with Texada considered part of the secondary development, along with other areas. It was a different scenario from what was presented on Monday when company representatives travelled to Texada meet with him, island improvement area representatives and local businesses.
Asked why the change in focus from Prince Rupert to Texada Island, Butler explained there were two reasons-increasing infrastructure costs and proximity to existing pipelines.
Two 15-storey tanks would have had to be constructed at Prince Rupert using nickel steel. At an operating temperature of -160°C, steel becomes very brittle and the addition of nickel gives it needed elasticity. With the price of nickel doubling in the last 24 months, infrastructure costs more than doubled for the north-coast community.
"Our board of directors was looking at building three tanks [including one on Texada] and two jetties. They started asking if consolidation and elimination of duplication could happen if there was only one location, instead of two."
While the depth of the Prince Rupert port was a benefit, it was not close to a pipeline, Butler explained. Texada not only has proximity to a pipeline, the Cheekye-Dunsmuir power line is only 18 kilometres from the proposed plant site and is closer to the primary market for WestPac.
A major benefit of a new LNG plant, Butler said, is that it will allow BC Hydro to decommission its Burrard Thermal power generator. "It operates at 32-per-cent efficiency and with its aging equipment rated for a capacity of 900 megawatts, it can only produce 250-300 megawatts.
"It's so inefficient, it's the most expensive power in BC," Butler added. "It's belching out significant amounts of greenhouse gases and nitrous oxide."
Butler noted that BC Hydro has been trying to close the generator for more than seven years but has not been able to find an alternative.
Burrard is required at peak demand times, and without that power, "inefficient as it may be, there would be brownouts."
New turbine technology that his company will use provides up to 70-per-cent efficiency and scrubbers take care of the nitrous oxide.
"We'll create an enabling opportunity for BC Hydro by having clean-burning, gas- fired generation on Texada Island and provide power directly into Cheekye."
Murphy wants to know "what's in it for Texada? [Island] residents still have a bad taste in their mouths" regarding Terasen Gas. They had expected to have access to natural gas when the pipeline across the island was proposed. "They never did get it."
WestPac will have to satisfy provincial and federal government regulatory bodies as well as the community of Texada, Murphy said. "It will be an uphill battle, not an easy thing."
He added that he had not heard much from islanders about the project, but expected more response following Tuesday's announcement. Open houses and perhaps a public hearing will likely be held to get feedback, Murphy said. "They need to get the facts out, looking at the safety of LNG; the visual impact of the plant. Instead of cruise ships passing by, there will be LNG freighters, and there will be towers to move power from the site."
On the other hand, Murphy said consideration needs to be given to the potential for jobs, both during the construction phase and after, that would be "a boon to the community. Our youth are looking for opportunity and jobs. We'll see how it unfolds. If the company gets all its cards in place and gets approval from Texada, so be it."
WestPac's proposal will provide "real direct benefits, growth and jobs, to the people of Texada Island and Powell River," said Butler.
Co-owner of the Texada Island Inn, Dan Devita, said he thinks the project is great. "There's a two-year process to go through to see if it's feasible and if the people of Texada accept it. We live on an industrial island and this is a unique opportunity for Texada and the district."
Devita added, "We're down to 53 kids in our school. Our population is static and we will continue to lose services if that continues."
Scott Randolph, Powell River Regional Economic Development Society manager, has been working closely with the company since November. He said he has found them to be "very sensitive to concerns and issues," and expects them to continue to be. "WestPac is a very credible organization that wants to ensure they get things done right.
"At the end of the day," said Randolph, "this is a huge development for the community if it moves forward, a major development in our region of up to two billion dollars."
He added that, "we have to be cautious as there are lots of steps to go through yet."
Tla'Amin (Sliammon) Chief Councillor Walter Paul was out of town and not available for comment prior to press time.
Timeline for proposed LNG facility
Summer 2007
Fall 2007
Fall 2008
Fall 2009
2013
©The Powell River Peak 2007
posted by Friend of Texada at
12:38 PM
<< Home