‘First of many’: $40B LNG Canada signals revival of mega projects – by Geoffrey Morgan (Financial Post – October 3, 2018)


Broad base of support for LNG Canada among Indigenous communities in B.C. improve its chances of being built

CALGARY – The $40-billion LNG Canada project is already facing opposition from environmentalists in British Columbia, but the business community and First Nations supporting the project cheered its positive final investment decision on Tuesday.

Royal Dutch Shell Plc. and joint-venture partners Petroliam Nasional Bhd., PetroChina Co. Ltd., Mitsubishi Corp. and Korea Gas Corp. announced they would fund the $40 billion LNG mega-project in Kitimat, B.C. on Tuesday with construction beginning immediately.

The first phase of the project includes a $6.2-billion natural gas pipeline through northern British Columbia and an $18-billion liquefaction facility in Kitimat, B.C., where the natural gas will be super-cooled until it reaches a liquid state for transport to Asian markets.

“We are within 10 days shipping of Tokyo or Shanghai,” said Maarten Wetselaar, director of integrated gas and new energies at Royal Dutch Shell, of the reasoning for proceeding with the investment, less than half the Gulf Coast projects’ shipping times of 24 days to Asia.

Wetselaar said global demand for LNG has grown 9 per cent in the last year alone and the LNG the project will produce is half as emission-intensive as coal, a power source which Asian countries are trying to replace with LNG.

For the rest of this article: https://business.financialpost.com/commodities/first-of-many-40b-lng-canada-signals-revival-of-mega-projects

Comments are closed.