Alberta Energy Regulatory Commission (AERC) approved Bluegraces LNG expansion project in the province’s southwest, which would provide the energy to meet Alberta’s energy needs in the region.
The decision is subject to the approval of a final environmental assessment process.
Alberta Energy Minister Bob Chiarelli said he will make the decision on Thursday.
Bluegrace’s expansion project is to bring in an additional 250 megawatts of LNG from a new terminal at the Cushing LNG terminal in New Brunswick.
The expansion would be the first phase of Bluegraced’s LNG infrastructure.
Bluegracys LNG facility will be located approximately 10 kilometres (6.6 miles) south of the Cushnaught oil sands in the town of Whitehorse.
Bluegrass Resources said it plans to develop and operate the facility with Alberta Energy Services, a joint venture owned by Alberta’s Natural Resources and Forestry Commission (NRF) and the Alberta Energy Regulator.
BlueGrace would also build and operate a processing facility, which will supply the LNG for the terminal’s final phase of operations.
Bluegrass Resources also expects to purchase and refurbish a new processing plant, which it expects to open in 2019.
Blue Graces Lng project is expected to produce about 1.5 million barrels per day of LPG and 1.2 million barrels of condensate.
The project is being funded through a $8.7-million loan from the Alberta government.
Alberta also provides $3.3-million of funding for the project.
BlueGrace will also provide $3 million of capital for the LPG facility.
Blue Grass Resources said its LNG operations are expected to contribute to Alberta’s LPG production of approximately 2.3 million barrels a day by 2030.