Shell’s LNG Canada project gets go-ahead from Asian partners – Moving closer to $40 billion final approvals

Approvals could see investment opportunities for Canada again


September 29, 2018 (EnergySpotlight) –

The board of PetroChina Co.,  approved its US$3.46 billion share of the LNG Canada project, the company said in a filing to the Hong Kong stock exchange Friday.

Korea Gas Corp. did the same in Seoul. 

Investment approvals help to move multibillion-dollar development one step closer to a final approval. (Shell said that the project could cost as much as $40 billion CAD.) 

All the partners, including Malaysia’s Petroliam Nasional Bhd (known as Petronas) and Japan’s Mitsubishi Corp., need to complete similar next-steps to approve a final investment decision. 

According to Bloomberg, “With the capacity to eventually export as much as 26 millions metric tons per year, primarily to Asia, it could be the biggest new LNG terminal to be sanctioned in years.”

Shell holds 40 per cent of LNG Canada, with Petronas at 25 per cent, 15 per cent each for PetroChina and Mitsubishi, and Korea Gas with 5 per cent.

From Natural Resources Canada- 20 LNG export facilities have been proposed in Canada – 14 in British Columbia, 3 in Quebec and 3 in Nova Scotia. 

According to a Conference Board of Canada study, which estimates the potential contributions LNG exports may make to the Canadian economy, an LNG export industry equivalent to 30 mtpa in British Columbia could add roughly $7.4 billion to Canada’s annual economy over the next 30 years, and raise national employment by an annual average of 65,000 jobs. 

Canadians should yet again, embrace investment opportunities in their backyard. 

The fact foreign investment is looking at BC and Canada period is a minor miracle! So let’s make it happen!

“We are now very, very close to realizing a final investment decision from LNG Canada. It will transform Kitimat, most assuredly, but will provide certainty and sustainability for our gas sector, from wellhead to water line.” — Premier John Horgan

Happy Saturday. 

Cheers!

Kelly. 

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