JV plans to start Canadian LNG development this year

LNG Canada, a joint venture (JV) proposing the construction of a liquefied natural gas (LNG) facility in the country, hopes to break ground on the CA$40 billion (US$31.2 billion) project in 2018.

Speaking at the Canada Gas and LNG Conference this week in Vancouver, the CEO of LNG Canada – a JV comprising Shell Canada Energy (50 per cent), an affiliate of Royal Dutch Shell and affiliates of PetroChina (20 per cent), Korea Gas Corporation (15 per cent) and Mitsubishi Corporation (15 per cent) – said he believed conditions were right to start building the LNG project in Kitimat, British Columbia by the end of this year.

Andy Calitz said the JV had been making progress in the 22 months since plans were suspended in July 2016, when the consortium announced it was delaying a final investment decision (FID).

“At that time (in 2016) when they asked the inevitable question, ‘When will you reconsider an FID?,’ our answer was, ‘We will be in construction in 2018.’

“I reaffirm that commitment today,” Mr Calitz said.

The CA$40 billion (US$ 31.2 billion) facility would initially consist of two LNG processing units, known as trains, each with the capacity to produce at least 6.5 mtpa per year; however, the project included an option to expand the facility to four trains in the future.

In April, LNG Canada announced it had selected a JGC Corporation (JGC) and Fluor Corporation (Fluor) JV as its engineering, procurement and construction contractor.

For more information visit the LNG Canada website.

If you have product news you would like featured in Pipelines International contact Journalist Chloe Jenkins at cjenkins@gs-press.com.au

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