Rio Tinto has signed an option agreement with LNG Canada, a joint venture between Shell Canada Energy, Phoenix Energy Holdings, Kogas Canada LNG and Diamond LNG Canada, to acquire or lease a wharf and associated land at its port facility at Kitimat in British Columbia.
LNG Canada is proposing to construct and operate a natural gas liquefaction plant and marine terminal export facility at the Kitimat site.
The agreement provides LNG Canada with a series of options payable against project milestones. The financial arrangements were not released.
Rio Tinto’s CEO, Sam Walsh, commented: “This is an excellent example of how we can generate meaningful value from our existing assets by selling options on port facilities to LNG Canada enabling it to share one of the best deep water ports on the western seaboard of the country. This innovative approach will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economy of British Columbia.”
LNG Canada’s VP, Andy Calitz, added: “We are pleased to confirm the finalisation of this agreement. We believe the LNG Canada project represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and communities of British Columbia.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/12022014/rio_tinto_sells_wharf_and_land_option_to_lng_canada_159/