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Dawson Creek potential host to $22 million-LNG facility

PembinaThe city is currently being considered by AltaGas and their subsidiary Pacific Northern Gas to be the location of a new liquefied natural gas (LNG) facility.

Mayor Dale Bumstead announced Mar. 3 that the company has chosen the city for the $22 million-facility, but AltaGas representatives have not confirmed the location.

“We are still reviewing a number of options to supply regional LNG to customers in that area, in that particular area, and unfortunately we cannot provide any details on any proposed projects at this time,” said AltaGas media representative Fred Cheney.

During AltaGas’ fourth quarter 2013 earnings call on Feb. 27, chairman and chief executive officer, David Cornhill, said that the company plans on making significant investments in regional LNG with a five-year plan to build the business to approximately 500,000 gallons a day and an investment of an estimated $250 million. He said that regional LNG could provide significant cost savings for their customers and that it is a much cleaner energy.

“We are moving forward with the initial LNG project in Dawson Creek. The $22 million project could be supplying LNG to customers as early as late 2014,” Cornhill said.

Cheney said that they are still reviewing their options.

“We are really cognizant of staying away from any definitives in confirming exactly where things are going to be, because there is still a lot of work to be done in determining exact sites,” he said.

Bumstead described feeling ‘over the moon,’ about the announcement, saying it could increase tax revenues, and potentially create indirect jobs.

“The big benefit to us comes from that kind of investment in your community as a utility, so it’s a fairly significant capital investment that will generate long-term benefits for our community in terms of tax revenue…it’s a huge signal to our community with somebody coming in and building a $22 million facility,” said Bumstead.


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