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BC approves Shell-led LNG project

LNG Industry,

According to reports, the government of British Columbia (BC) has approved an LNG export terminal project, led by Shell. This authorisation appears alongside 50 conditions ­– social, environmental and operational – which must be abided by. An additional 24 conditions were shared within an environmental certificate for the development, including regular contact and consultation with aboriginal groups.

“Many of the legally binding conditions were informed by consultation with aboriginal groups and include requirements for the continued engagement of aboriginal groups, programs to support aboriginal employment,” the BC Environment Ministry was quoted as saying in the Globe and Mail. “The LNG Canada export terminal will require various federal, provincial and local government permits to proceed.”

Provincial and federal approval for the LNG Canada project

In response to receiving both federal and provincial approval, Chief Executive of LNG Canada, Andy Calitz, said: “Receiving both provincial and federal approval of our Environmental Assessment is a critical milestone on our path to making a final investment decision."

Ellis Ross, Chief Councillor of the Haisla First Nation, has confirmed that the aboriginal group supports the Shell-led venture, and Kitimat Mayor, Phil Germuth, sees the project as a likely economic boost.

A final decision is expected to be made in 2016 and, if all is approved, the first phase of construction is set to take approximately five years to complete.

The LNG Canada joint venture will be fronted by Shell, owning 50% whilst PetroChina Co. Ltd holds 20% and other Asian partners, such as Japan’s Mitsubishi Corp. and South Korea’s Korea Gas Corp., each of which have 15%.

Sources: Reuters and The Globe and Mail.

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