News British Columbia

LNG deal sealed as eco groups ready fracking suit

Jeremy Nuttall

By Jeremy Nuttall, 24 hours Vancouver

British Columbia Premier Christy Clark (left) seen here with Alberta Premier Alison Redford (right) during a photo op in Vancouver, B.C. on Tuesday November 5, 2013. (CARMINE MARINELLI/ 24 HOURS)

British Columbia Premier Christy Clark (left) seen here with Alberta Premier Alison Redford (right) during a photo op in Vancouver, B.C. on Tuesday November 5, 2013. (CARMINE MARINELLI/ 24 HOURS)

Premier Christy Clark announced a massive liquefied natural gas project between Nexen, a subsidiary of Chinese state-owned CNOOC, and other partners at Grassy Point near Prince Rupert.

The new facility, to be called Aurora LNG, was created by an agreement between the B.C. government with Nexen and its partners, Japan’s INPEX Corporation and JGC Corporation.

According to Clark, the agreement came out of a call for interest put out earlier this year.

Nexen CEO Kevin Reinhart said the company intends to build a top-notch LNG facility delivering “lasting economic and social benefits.”

But on the same afternoon as the announcement, Vancouver-based environmental advocacy group Ecojustice said it would be filing a lawsuit against the province related to fracking, a technique used to extract natural gas.

The group said it won’t talk about the lawsuit until after it’s actually filed Wednesday, but a news release alleges the province’s Oil and Gas Commission is violating the Water Act, and also names the Encana Corporation as a target of the suit.

The suit will be filed on behalf of Sierra Club BC and the Wilderness Committee, and Ecojustice said it will reveal the details at a media conference in Terrace.

Meanwhile, at Tuesday’s announcement Clark said a royalty regime for natural gas sales is still being worked out.

 

 

 

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