LNG Canada announced that the joint venture participants for the construction of Canada’s first largescale LNG export facility made a positive final investment decision (FID).
The Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS Joint Venture (JV) have taken an FID to build the facility in Kitimat, British Columbia in the traditional territory of the Haisla Nation.
The FID is for two processing units and JV participants will be responsible for providing their own natural gas supply, with each to individually offtake and market its share of LNG.
LNG Canada first identified Kitimat as the ideal location for an LNG export facility from 500 potential sites in British Columbia.
The facility has been designed to achieve the lowest carbon intensity of any largescale LNG plant operating in the world today, using a combination of using renewable hydropower and efficient gas turbine engines.
Demand for LNG expected to double by 2035 and the facility 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.
LNG Canada CEO Andy Calitz said the FID showed that Canada could would with First Nations and local communities to deliver competitive energy projects.
“This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous interests,” said Mr Calitz.
“We look forward to helping Canada take its place on the global map of LNG exporting countries and want to recognise the important role played by all levels of government, First Nations and the many people that supported LNG Canada to help us get to an FID.”
Canadian Prime Minister Justin Trudeau said the decision was a vote of confidence for the development of a sustainable energy industry.
“Today’s announcement by LNG Canada represents the single largest private sector investment project in Canadian history,” said Mr Trudeau.
“It is a vote of confidence in a country that recognises the need to develop our energy in way that takes the environment into account, and that works in meaningful partnership with Indigenous communities.”
In response to LNG Canada’s decision to proceed with the Kitimat LNG Project, Canadian Energy Pipeline Association President and CEO Chris Bloomer said the association welcomes the news.
“This decision is a significant step forward in ensuring Canada’s ability to export responsibly produced Canadian energy to global markets and obtain a fair price for our resources,” said Mr Bloomer.
“The project also represents a major investment in the Canadian economy, which is critical as our country seeks to attract and retain foreign capital.
“Transmission pipelines are essential to safely and responsibly transporting oil and natural gas to processing facilities across Canada, and TransCanada’s Coastal GasLink pipeline project will supply natural gas to LNG Canada at a world-class safety standard.
“These are Canadian resources and the benefits of access to new markets will be felt across the country for years to come.
“LNG exports are an important part of our economy, and Canada’s transmission pipeline companies will work with Canadians to build a safer, smarter energy future.”
First LNG is expected to flow before the middle of the next decade.
For more information visit the LNG Canada website.
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