Shell, Petronas, PetroChina, Mitsubishi and Kogas have approved construction of LNG Canada, an LNG export facility in northern British Columbia.
From a list of 500 possible sites for a large-scale LNG export terminal, LNG Canada selected Kitimat in the traditional territory of the Haisla Nation.
Each of the joint venture companies will be responsible to provide its own natural gas supply and will individually offtake and market its share of LNG. The project will initially export LNG from two processing units for an estimated 14 million tonnes per annum with the potential to expand to four units in the future.
‘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, says Andy Calitz, CEO, LNG Canada.
‘This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous reconciliation.’
To get the natural gas from the Montney basin in the north of the province to Kitimat, LNG Canada has contracted with TransCanada, who will build, own and operate the 670-km Coastal GasLink pipeline.
Construction is expected to take five years, at which time LNG Canada will provide natural gas to countries where imported gas could displace more carbon intensive energy sources and help address global climate change and air pollution. JGC Fluor is the EPC consortium the company selected to build the plant.