Western Canada natural gas export facility features Black & Veatch’s PRICO® process

Douglas Channel LNG facility is first-of-its-kind application for PacificBasin and Canadian natural gas resources

KITIMAT, BRITISH COLUMBIA, CANADA. (17 August 2011) – Black & Veatch hasbegun front-end engineering design (FEED) for a new, liquefied natural gas(LNG) export facility that will be constructed on a barge and transported tothe Douglas Channel near Kitimat Village, British Columbia, Canada. The uniquefacility will feature the company’s patented PRICO® process to liquefy naturalgas for transport to Asian markets.

“We are looking to build the majority of the LNG export facility on astandard Panamax barge to minimize the physical and environmental impact inthis scenic area,” said Tom Tatham, Managing Director, Douglas Channel GasServices Ltd. “Black & Veatch’s PRICO process is ideal for this type ofapplication because of its smaller footprint and flexibleoperations.” 

The project is owned by HN DC LNG Limited Partnership (Haisla Nation), LNGPartners, LLC and Douglas Channel Gas Services Ltd. It will be the firstbarge-mounted export facility serving the Pacific Basin, as well as the firstfor exporting Canadian natural gas. The facility’s location takes advantage ofNorth America’s northernmost, ice-free port and provides more direct deliveryroutes to Asian markets. The project also benefits from existing infrastructuresuch as a nearby natural gas pipeline and local hydroelectric power.

Black & Veatch’s FEED work for the facility, that will produce more than800,000 tons per year of LNG, will be completed in January 2012. The FEED willprovide a definitive estimate to be used in finalizing a lump sum, turnkeycontract between the parties for the engineering, procurement, construction,testing and commissioning of the facility.

“The global LNG export market is extremely cost-competitive,” said DeanOskvig, President and CEO of Black & Veatch's global energy business. “Ourproprietary PRICO technology is scalable to our clients needs and provides thecapital investment and operational efficiencies needed to bring natural gasresources to market.”

Editor’s Notes:

• While locating the LNG export facility in the Douglas Channel providestransportation efficiencies, the weather and other factors do not make it idealfor construction activities. To overcome this challenge, the LNG facilitieswill be built on a barge in a more favorable environment. When completed, thefacility will be transported to its location in the Douglas Channel.
• Natural gas will be supplied to the facility via an existing natural gaspipeline for liquefaction.
• During liquefaction, natural gas is cooled to approximately -162°C(-260°F).
• LNG from the new export facility will be transferred directly to LNGcarriers for transport to Asian markets.
• It will take approximately 30 days for the facility to directly fill an LNGcarrier and up to 25 days for the roundtrip to and from most Asianmarkets.
• LNG comprises 1/600^thof the volume of its vaporized gasequivalent, making LNG ideal for shipping and storage. LNG can be transportedby specially designed cryogenic sea vessels (LNG carriers).
• PRICO is an innovative process developed by Black & Veatch to liquefynatural gas, making it available for transport via truck or ocean tanker. Theprocess uses a Black & Veatch-patented, single-mixed refrigerant loop fornatural gas liquefaction. The process boasts several key advantages ,including:
  
  • The lowest capital costs of all competing technologies.
  • A simplified refrigeration system that requires minimal equipment
  • Simplified control and maintenance
• The PRICO process is used in LNG production facilities worldwide because ofits flexibility for LNG capacity and in feed gas composition. This flexibilityis invaluable for clients because they receive natural gas from multiplesources with varying composition and conditions.
• Black & Veatch is an industry pioneer in LNG, involved in LNGfacilities since the early 1960s. The company has been involved with a numberof LNG facilities worldwide, including 21 operating liquefaction facilities infive different countries with an additional 10 projects in development at thistime.
• Please use the following link to view and download renderings of thefacility.NOTE: Please give photo credit to LNG Partners, LLC.

  http://www.flickr.com/photos/black_veatch/sets/72157627315327309/

• For more information on this project, please visit the Douglas ChannelEnergy Partnership Web site:http://douglaschannelenergy.com/

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About Black & Veatch

Black & Veatch is a global leader in the consulting, engineering,construction and operation of what the world needs now and in the future in thecrucial areas of energy, water and telecommunications and in providingup-to-the-minute services in the fast changing federal and environmentalmarkets. Founded in 1915, the employee-owned, $2.3 billion company operates outof over 110 offices worldwide and has completed projects in more than 100countries.

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