According to the latest Reuters report, LNG Canada expects to hold a cost advantage over its rivals in the race to expand LNG export capacity.
Michael Crothers, Shell Canada President, told Reuters, “What’s in our favour now is expansions are typically lower capital cost… I think that opens up an even more competitive opportunity for us and the partners.”
This cost advantage could tip the balance for LNG Canada in the future, given that it already holds advantages with regards to its proximity to key Asian markets and access to cheap feed gas.
A phase two expansion would double the project’s current estimated output of 14 million tpy to 28 million tpy.
The decision whether or not to pursue this expansion is expected to remain unanswered in the short term. It is likely that Shell leadership will wait until phase one begins to generate quantifiable results before considering further investment.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02112018/shell-highlights-lng-canada-cost-advantage/
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