NEB approves Fort Nelson North Gas Processing Facility

CALGARY, March 31 /CNW/ - In a decision released today, the National Energy Board (NEB) approved an application from Westcoast Energy Inc., carrying on business as Spectra Energy Transmission (Westcoast) for the proposed Fort Nelson North Gas Processing Facility.

Westcoast applied for permission to construct and operate a natural gas processing plant to accommodate the increased production and demand on the east side of the Horn River basin. The project, to be located approximately 75 kilometres northeast of Fort Nelson, British Columbia, will cover an area measuring about 80 hectares, of which 50 hectares will require clearing.

The plant will have the capacity to produce approximately 250 million standard cubic feet per day (MMscf/d) of raw gas, which represents the amount of natural gas needed to supply over 900,000 homes over the course of a year.

The NEB found the proposed project to be in the public interest. Having examined the matter of supply and demand as it relates to the Project, the NEB was satisfied that Westcoast has demonstrated based on contracted capacity that the facility is needed, and would be used and useful at a reasonable level over its economic life.

The NEB's approval to proceed with the project includes 22 facility conditions. Key conditions target safety, protection of the environment and consultation with Aboriginal groups in the project area.

One of these conditions requires that Westcoast submit an annual green house gas status report for this project, as well as updates on its investigation of possible carbon capture options, including any progress made towards the overall reduction of emissions.

The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

This news release and the Reasons for Decision are available on the Board's Internet site at www.neb-one.gc.ca under What's New!

For further information: Carole Léger-Kubeczek, [email protected], Communications Officer, Telephone: [phone], TTY (teletype): 1-800-632-1663; For a copy of Decision GH-1-2010: National Energy Board Library, Ground Floor, 444 Seventh Avenue SW, Calgary, Alberta, T2P 0X8, Telephone: [phone], Telephone (toll free): 1-800-899-1265, Telecopier: [phone], Telecopier (toll free): 1-877-288-8803, E-mail: [email protected]