On November 4, 2014, the BC Government enacted the Domestic
Long-Term Sales Contracts Regulation, which requires BC Hydro
to establish a program for long-term sales contracts for
electricity to LNG facilities within six months, and sets the
minimum prices to be paid by LNG facilities for electricity under
such agreements. On the same day, LNG Canada also became the
first of BC's proposed LNG facilities to enter into a long-term
power agreement with BC Hydro for the provision of electricity for
its auxiliary power needs. It is expected approximately 20%
of the site load (about 200 MW) will be served by BC Hydro power,
with the remainder via "direct drive"
processes.
The Regulation provides potential investors with an
additional measure of cost certainty and should assist them in
pricing out projects as they move towards final investment
decisions. Under the Regulation, the combined energy
and demand charge for LNG facilities will be $83.02 per megawatt
hour (MWh)
