LNG Canada investment

Investment green light for massive LNG facility

Tuesday, October 2, 2018

LNG Canada has announced that its joint venture participants – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) to build the $40 billion LNG Canada export facility in Kitimat, B.C., in the traditional territory of the Haisla Nation.

“The Final Investment Decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects,” said Andy Calitz, CEO of LNG Canada. “This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous interests.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada said, “LNG Canada represents the single largest private sector investment project in Canadian history. It is a vote of confidence in a country that recognizes the need to develop our energy in way that takes the environment into account, and that works in meaningful partnership with Indigenous communities.”

Each joint venture participant will be responsible to provide its own natural gas supply and will individually offtake and market its share of LNG. The FID is for two processing units or “trains,” with first LNG expected before the middle of the next decade.

“The project LNG Canada is bringing to northern B.C. symbolizes the kind of balanced and sustainable path forward British Columbians are looking for,” said B.C. Premier John Horgan.

LNG Canada has worked towards FID since it first identified Kitimat from a list of 500 potential sites in British Columbia as the ideal location for an LNG export facility.

LNG Canada’s export plant has been designed to achieve the lowest carbon intensity of any large-scale LNG plant operating in the world today. LNG Canada achieved this through a combination of using renewable hydropower from BC Hydro and highly-efficient gas turbine engines. With demand for LNG expected to double by 2035 compared with today as a result of global commitments to reduce greenhouse gas emissions and improve air quality, LNG Canada will provide natural gas to countries where imported gas could displace more carbon intensive energy sources and help to address global climate change and air pollution.

Fluor’s joint venture with JGC Corporation will provide the engineering, procurement, fabrication and construction on the project.

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