LNG Canada partners delay final investment
Partners in the LNG Canada project are delaying a final investment decision in light of ‘global industry challenges’, they announced this week…
LNG Canada announced this week that its joint venture participants have decided to delay a final investment decision on the project that had been expected by the end of 2016.
According to LNG Canada joint venture partners Shell (50%), PetroChina (20%), Mitsubishi Corporation (15%) and Kogas (15%), the project remains a “promising opportunity”. With the backing of stakeholders and First Nations, LNG Canada has received critical regulatory approvals, including the necessary environmental approvals and First Nations support along the pipeline right-of-way through its pipeline partner TransCanada’s Coastal GasLink. Commercial and engineering contracts are already in place to design and build the project.
Opportunity to export Canadian gas
British Columbia (BC) is Canada’s second-largest natural gas producing province, and recent natural gas discoveries in the northeast portion of the province have increased proven reserves to greater levels than previously anticipated. BC’s reserves now significantly outstrip the volumes of natural gas needed to meet its domestic demand.
The opportunity now exists to export some of Canada’s excess natural gas to Asian markets; an opportunity the joint venture participants hope to make the most of through LNG Canada.
At full build out, the 300 hectare site in Kitimat will include: a natural gas receiving and LNG production facility; a marine terminal; a tugboat dock; LNG loading lines; roads required primarily during construction and for maintenance; a material offloading facility primarily for use during construction; and supporting infrastructure and facilities such as power supply, water supply, and waste collection and treatment.
‘Valuable support’ of First Nations
“Our project has benefited from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community,” said Andy Calitz, CEO of LNG Canada. “We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the joint venture participants.”
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