The proposed Kitimat Liquefied Natural Gas terminal (KLNG) is taking a new direction - it will be exporting from its Beese Cove terminal rather than importing.

The company cited rising natural gas demand - and prices - in Asia and an increase in supply throughout North America for the change in direction.

The spike in North American supply, said KLNG president Rosemary Boulton, is due in part to technological advances in drilling.

She added a lot of developments made in the southern United States have now found their way into Canada.

“A lot of it has been brought up into Alberta and British Columbia and the results are very positive,” said Boulton.

The enhancements to gas fields and delivery has meant a greater supply than originally considered.

“There’s just more natural gas being developed now than we thought there would be three or four years ago when we originally proposed to import natural gas,” she explained.

The change also means an increase in the workforce both during construction and operation. Construction jobs for this new proposal are estimated at 1,500 workers, more than double the original 700.Permanent jobs will also double to 100.

“On the construction side it’s just a larger project during the construction phase,” said Boulton in explaining the job hikes. The estimated cost is $3 billion.

“It will stay within the same footprint that we’ve had permitted previously, but it’s just a more complicated technological plant to build.”

Once operating, she said there’s simply a need for more bodies to work on the liquefaction process than there would have been with regasification.

KLNG has also entered into a memorandum of understanding with an unnamed leading multinational corporation that is conducting a feasibility study to participate in the project.

Boulton explained the business arrangement is still being worked on so she was not at liberty to discuss it in detail, but did say that they would be a strong partner when they come to a successful negotiation.

Regulatory, environmental and government approvals will now have to be worked for the export operation. The same permits for the import operation had already been received, but Boulton is confident that they won’t be starting at square one again.

“It’s really just a change of use for the terminal,” she explained,

She reiterated the terminal will use the same environmental footprint, the same number of ships will be coming in, and the use of water and emissions remains similar.

“We’re hopeful that it won’t be complicated or as lengthy a process as it was in the original approval.”

The proposed Pacific Trails Pipeline, which would have transported the imported natural gas to Summit Lake will still be built, she confirmed.

Boulton pointed out that the pipe was permitted as a bi-directional one and it has already been approved by the provincial government and a recommendation for approval is going to the federal agencies, She is hopeful a decision on that will be made by the end of the year.

Once commercial contracts are in place - she hopes within the next nine to 12 months - ground breaking for the terminal should take place in the third-quarter of 2009 with construction completed sometime late in 2013.

An economic benefit agreement is in place with the Haisla First Nation and KLNG hopes to be able to employ a certain number of them.

“Clearly, there’s benefits available to them as well as the District of Kitimat and surrounding areas,” Boulton said. “We’re looking to use a lot of the local personnel and business services.”

Boulton looked forward to coming to the community in the near future to discuss the project.