Rockies LNG – Power Transmission Conceptual Assessment and BC Hydro Interconnection and Electricity Rate Advisory

Project Highlights

Rockies LNG Partners retained KWL to complete a conceptual assessment of power transmission options to supply electricity to the proposed Ksi Lisims LNG facility at Wil Milit on Pearse Island, BC.  The study evaluated alternatives for delivering BC Hydro power to the floating LNG export facility while supporting the project’s reliability target of 99.99% through integration with on-site natural gas-fired generation.

The assessment focused on accommodating a potential electrical demand of up to 600 MW and supporting a future BC Hydro System Impact Study application.  KWL evaluated transmission capacity requirements, route feasibility, infrastructure needs, and the potential impacts of connecting a major industrial load to the provincial transmission system.

Using GIS analysis, conceptual engineering, and cost estimates, KWL assessed three transmission corridor options.  Two options involved new transmission connections from the Aiyansh Substation, while a third option considered connection from the Skeena Substation near Terrace.  Each option included combinations of overhead transmission lines, submarine cable crossings, substation upgrades, and corridor routing through the Nass Valley and Portland Inlet.

In addition to technical and cost evaluations, KWL completed a high-level review of environmental assessment and permitting requirements.  The study identified key environmental, social, First Nations, and regulatory considerations associated with future transmission development and compared the relative advantages and constraints of each route alternative.

Following completion of the transmission assessment, Rockies LNG Partners retained KWL to provide independent technical advisory services related to BC Hydro interconnection, electricity rate, and transmission infrastructure agreements for the proposed Ksi Lisims LNG project, KWL’s role focused on reviewing technical and commercial implications of BC Hydro’s proposed agreements, including transmission system upgrades, interconnection requirements, electricity rates, and potential cost allocation impacts for Rockies LNG.

The project involves review of proposed arrangements between Ksi Lisims LNG and BC Hydro for phased electrical service to the LNG facility.  The MOU contemplated an initial partial supply, followed by permanent 600 MW service requiring major transmission infrastructure, including the new 500 kV North Coast Transmission Project.

KWL reviewed BC Hydro’s proposed interconnection approach, rate structures, facility responsibilities, planning allowances, system upgrade assumptions, and potential risks associated with schedule, stranded assets, and infrastructure ownership.  The review identified key questions and negotiation considerations related to facility study costs, customer-funded infrastructure, cost offsets, power factor assumptions, transmission line timing, and service arrangements.