Warning Letter to Port Edward LNG Ltd. (Port Edward)

CER File: XP2425-015

October 30, 2024

Registered with acknowledgement of receipt.

Avi Singh Salh
Director
Port Edward LNG Ltd.
19th Floor, 885 West Georgia Street
Vancouver, BC V6C 3H4

RE: Warning Letter to Port Edward LNG Ltd. (Port Edward)

Dear Avi Singh Salh:

The Canada Energy Regulator (CER) is the independent federal regulator of pipelines, energy development and trade in the Canadian public interest. The CER collects, monitors, analyzes, and publishes fact-based information on energy markets and supply, sources of energy, and the safety and security of pipelines and international power lines. The data and reports published by the CER provide timely and relevant information to Canadians, on commodity imports and exports, energy supply, and sources.

This letter is to inform you that the CER has serious concerns with Port Edward’s compliance with the requirements under National Energy Board Export and Import Reporting Regulations (Reporting Regulations). Reporting on the export of crude oil and refined petroleum products, natural gas, natural gas liquids and electricity from Canada is regulated under the Reporting Regulations.

In January 2024, the CER issued an All Company LetterFootnote 1 which reminded companies holding an export license, permit or order (authorization) exporting the above-mentioned commoditiesFootnote 2 to comply with the Reporting Regulations. Authorization holders must comply with the Reporting Regulations and file monthly reports on their activities. The Reporting Regulations also clearly outline the information requirements to be filed each month.

RELEVANT FACTS

Port Edward is the holder of GO-018-2023 and is subject to the Reporting Regulations.

When a company fails to file a report required by the Regulations by the prescribed due date, the CER’s Commodity Tracking System (CTS), which companies use to file reports, automatically tracks the late filing. CTS generates automated email reminders which state reports are due soon, or that reports are late.

The table below documents the instances where filings were not made or made late. Each of these instances is a non-compliance with the Reporting Regulations.

Authorization Commodity Due Date Filing Status
GO-018-2023 LNG 31 January 2024 Late
GO-018-2023 LNG 29 February 2024 Late
GO-018-2023 LNG 31 March 2024 Late
GO-018-2023 LNG 30 April 2024 Late
GO-018-2023 LNG 31 May 2024 Late
GO-018-2023 LNG 30 June 2024 Late
GO-018-2023 LNG 31 July 2024 Late
GO-018-2023 LNG 31 August 2024 Late

Compliance with the Reporting Regulations is mandatory, and the CER expects companies to file reports in a correct and timely manner on or before the due date. Companies are required to file their reports through the CTS.Footnote 3

CONCLUSION

This warning letter, notifying you of Port Edward’s non-compliances with the Regulations, is issued in accordance with the CER’s Enforcement Policy.Footnote 4 The intent of this letter is to bring this matter to your attention, so you can take the necessary corrective action to ensure that timely submission of the required reports will be made in accordance with the Reporting Regulations.

Please be advised that this written warning, and the circumstances to which it refers, will form part of Port Edward’s compliance history.

Future non-compliances may result in further enforcement action, in accordance with the CER’s Enforcement Policy. Future enforcement action could include a Commission Order or Direction or administrative monetary penalties. You can find more information on the CER’s compliance and enforcement activities at https://www.cer-rec.gc.ca/en/safety-environment/industry-performance/reports-compliance-enforcement/index.html.

Should you have any questions regarding this review, please contact Information not availableInformation not available.

Yours sincerely,



Olivera Blagojevic
Acting Vice–President
Systems Operations Business Unit

CC: Avi Singh Salh, 5588 Panorama Drive, Surrey BC V3S 1B7

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