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1 Introduction and Project Overview Pacific NorthWest LNG Environmental Impact Statement and Environmental Assessment Certificate Application Section 1: Introduction and Project Overview 1 INTRODUCTION AND PROJECT OVERVIEW Pacific NorthWest LNG Limited Partnership (PNW LNG) proposes to construct and operate the Pacific NorthWest LNG Project (the Project), a liquefied natural gas (LNG) facility on Lelu Island, within the District of Port Edward, British Columbia (BC) (see Figure 1-1). The Project will be located primarily on federal lands and waters under the jurisdiction of the Prince Rupert Port Authority (PRPA). The Project will convert natural gas into LNG for export to Pacific Rim markets in Asia. At full build-out (on completion of Phase 2, with three production trains), the facility will receive approximately 3.2 billion standard cubic feet per day (Bcfd), or 9.1 x 107 cubic metres (m3) per day, of pipeline grade natural gas, and produce up to 19.2 million tonnes per annum (MTPA) of LNG. The natural gas will be transported to the LNG facility by a new pipeline from northeast BC. The pipeline is the Prince Rupert Gas Transmission Project, which is being proposed by a third party (TransCanada Pipelines Ltd.) and will be assessed under a separate regulatory process. 1.1 Purpose of the EIS/Application This Environmental Impact Statement and Environmental Assessment Certificate Application (EIS/Application) is prepared to provide the Canadian Environmental Assessment Agency (CEA Agency) with the information necessary to prepare an Environmental Assessment Report (EAR) in accordance with the requirements of the Canadian Environmental Assessment Act, 2012 (CEAA 2012), and to provide the BC Environmental Assessment Office (BC EAO) with the information necessary to issue an Environmental Assessment Certificate (EAC) under the BC Environmental Assessment Act (BCEAA). The EIS/Application will also be reviewed by the Working Group, consisting of: . CEA Agency . BC EAO . Environment Canada (EC) . Fisheries and Oceans Canada (DFO) . Transport Canada (TC) . Health Canada (HC) . Parks Canada (PC) . BC Climate Action Secretariat . BC Ministry of Community, Sport and Cultural Development . BC Ministry of Environment (BC MOE) . BC Ministry of Forests, Lands and Natural Resource Operations (BC MFLNRO) . BC Ministry of Health . BC Ministry of Jobs, Tourism and Skills Training . BC Ministry of Transportation and Infrastructure . BC Oil and Gas Commission (BC OGC) February 2014 1-1 Project No. 1231-10537 Pacific NorthWest LNG Environmental Impact Statement and Environmental Assessment Certificate Application Section 1: Introduction and Project Overview . District of Port Edward . PRPA . City of Prince Rupert . Metlakatla First Nation . Lax Kw’alaams First Nation . Gitxaala Nation . Kitselas First Nation . Kitsumkalum First Nation. The information included in the EIS/Application meets the requirements set out in the federal EIS Guidelines and the provincial Application Information Requirements (AIR). The EIS/Application is organised as follows: . Section 1 (Introduction and Project Overview) states the purpose of the EIS/Application, information on PNW LNG, describes the regulatory framework, and outlines the organization of the EIS/Application. Section 2 (Project Description) describes the design philosophies of the Project, Project components and Project activities, alternative means of carrying out the project, the scope of the project and applicable permits and regulatory approvals. Section 3 (Summary of Engagement) summarises PNW LNG’s consultation activities completed prior to the submission of the EIS/Application and describes the activities that will occur following submission. Section 4 (Scope of Assessment and Methods) describes the selection of VCs, assessment boundaries, and the methods used to assess potential effects on VCs. Section 5 (Existing Environment) provides an overview of the regional physical, environmental, and socio-economic setting. Sections 6 to 21 (Valued Components) assesses the potential effects of the Project on each valued component. Section 22 (Accidents and Malfunctions) describes the potential risk of accidents and malfunctions and the effects. Section 23 (Effects of the Environment on the Project) assesses the potential effects the Environment on the Project. Section 24 (Environmental and Operational and Operational Management Plans) provides an overview of the proposed environmental and operational and operational management plans. Section 25 (Changes to the Environment) describes the changes to the environment from the project and Section 26 (Effects of Changes to the Environment) describes the effects of changes to the environment, respectively. Section 27 (Aboriginal Rights and Related Interests) describes potential adverse effects of the proposed Project on Aboriginal Rights and related interests. February 2014 1-2 Project No. 1231-10537 Pacific NorthWest LNG Environmental Impact Statement and Environmental Assessment Certificate Application Section 1: Introduction and Project Overview . Section 28 (Summary of the Assessment) summarizes then potential effects of the Project, proposed mitigation measures, residual and cumulative effects, and the significance determinations for each VC. Section 29 (Benefits to Canadians) describes the benefits of the Project. Section 30 (Follow-up Program and Compliance Reporting) describes the follow-up program and compliance monitoring proposed for the Project. Section 31 (Conclusion) provides an overall conclusion of the significance of Project effects. The appendices provide supporting studies and documentation relevant to the review of the EIS/Application. 1.2 Proponent Information 1.2.1 Pacific NorthWest LNG Limited Partnership PNW LNG is majority-owned by PETROLIAM NASIONAL BERHAD (PETRONAS). At the time of submission of the EIS/Application Japan Petroleum Exploration Company (JAPEX) and PetroleumBRUNEI are minority shareholders in PNW LNG and its associated natural gas supply. Additional partners may join PNW LNG in later stages of development. PNW LNG’s engineering, procurement, construction and commissioning (EPCC) contractor will construct and commission the facility and PNW LNG will own and operate it. PETRONAS is wholly owned by the Government of Malaysia and ranked among the FORTUNE Global 500 largest corporations in the world. PETRONAS is an integrated oil and gas business with interests in exploration and construction, downstream oil and petrochemicals, gas and power, logistics and marine, and technology and engineering. It is a fully integrated gas business from exploration and production to processing and liquefaction, pipeline operations, shipping and regasification. PETRONAS’ gas and power business processes, liquefies, transmits, markets and trades LNG and other gases. PETRONAS operates one of the world’s largest LNG facilities in Bintulu, Sarawak, which consists of three plants—Malaysia LNG, LNG Dua and Malaysia LNG Tiga—with a combined capacity of 24 million tonnes per annum, and is currently undertaking an expansion of the complex by adding production train 9. PETRONAS is also a joint venture partner in Egyptian LNG at Idku, Egypt; a joint venture partner in the Gladstone LNG coal seam gas project in Gladstone, Australia; and has a 50% stake in the Dragon LNG Regasification Terminal in Pembrokeshire, Wales (PETRONAS 2013). PETRONAS also recently commissioned an LNG import terminal in Malaysia, and is a pioneer in floating LNG facilities. JAPEX is an oil and natural gas exploration and production company active in Japan, USA, Canada, Indonesia, Russia and Iraq. JAPEX subsidiaries hold interests in shale gas development and oil sands projects in Canada. It is also involved in similar projects world-wide, as well as having domestic oil and gas fields and pipeline networks in Japan (JAPEX 2013). February 2014 1-3 Project No. 1231-10537 Pacific NorthWest LNG Environmental Impact Statement and Environmental Assessment Certificate Application Section 1: Introduction and Project Overview PetroleumBRUNEI (Brunei National Petroleum Company Sendirian Berhad) was incorporated as a private limited company on January 14, 2002. It is wholly owned by the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam. Communications regarding the PNW LNG Project should be sent to: Proponent address: Pacific NorthWest LNG Oceanic Plaza, Suite 1900 1066 West Hastings Street Vancouver, BC V6E 3X1 Attention: Michael Lambert, Head, Environmental and Regulatory Affairs Telephone: (778) 372-4705 Fax: (604) 630-3181 Email: [email protected] Or: Greg Kist, President Telephone: (778) 372-4700 Email: [email protected] The Project’s EPCC contractor will be required to carry all appropriate insurances as a condition of the contract with PNW LNG to design, build and commission the LNG facility. The Port of Prince Rupert may also require, as a condition of the federal land lease, that PNW LNG carry all the appropriate insurances for an energy development project of this scope and scale on federally administrated land. In additional, PETRONAS has a comprehensive system of technical standards (PTS) that address corporate policies and procedures on engineering, environmental, and health and safety management. These policies, and the management systems associated with them, will be implemented by PNW LNG for the Project. A number of environmental and operational management plans for the Project will be aligned with existing PETRONAS standards. 1.2.2 Environmental Assessment Consultant PNW LNG
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