ORDER NUMBER
G-204-25
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Pacific Northern Gas Ltd.
Gas Sales Agreement with LNG Canada Development Inc. and
Tariff Supplement 31 JGC Fluor BC LNG Joint Venture Agreement Cancellation
BEFORE:
A.K. Fung, K.C., Commissioner
on August 19, 2025
ORDER
WHEREAS:
A. On July 8, 2025, Pacific Northern Gas Ltd. (PNG) filed an application (Application) with the British Columbia Utilities Commission (BCUC) pursuant to Sections 59 to 61 of the Utilities Commission Act (UCA) for approval of gas sales agreement to provide natural gas service to LNG Canada Development Inc. (LNG Canada) for its administration and non-process buildings located at the liquified natural gas (LNG) facility in Kitimat, British Columbia (LNG Canada GSA);
B. PNG also seeks approval to terminate Tariff Supplement (TS) 31 with JGC Fluor BC LNG Joint Venture (JFJV). JFJV was the engineering, procurement and construction contractor during the construction of the LNG facility in Kitimat, British Columbia (LNG Canada Project) and to whom PNG provided natural gas service;
C. By Order C-3-21 dated June 30, 2021, the BCUC issued a Certificate of Public Convenience and Necessity to design and construct a new let-down station dedicated to gas service to JFJV for the LNG Canada Project. The BCUC also approved a gas sales agreement, as TS 31, whereby PNG would provide firm natural gas service to JFJV at PNG’s Large Commercial Sales Rate Schedule 3 on a take-or-pay basis during the construction phase of the LNG Canada Project (JFJV GSA);
D. PNG submits that LNG Canada and JFJV have established July 1, 2025, as the transition date for transfer of responsibility of the administration and non-process facilities. Rather than pursuing an assignment of the JFJV GSA, LNG Canada has chosen to enter into the LNG Canada GSA with PNG, and PNG and JFJV have agreed to terminate the JFJV GSA effective as of the commencement of the LNG Canada GSA; and
E. The BCUC has reviewed the Application and finds the following determinations are warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. The LNG Canada GSA, inclusive of Schedules A and B, is approved effective as of the date of this order.
2. TS 31 is rescinded effective as of the date of this order.
3. PNG is directed to file with the BCUC updated tariff pages for endorsement reflecting the above approvals within 15 days of the issuance of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 19th day of August 2025.
BY ORDER
Electronically signed by Anna Fung
A.K. Fung, K.C.
Commissioner