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Shell and partners formally announce Canadian LNG project

LNG Industry,

Shell, KOGAS, Mitsubishi Corp. and PetroChina have formally announced that they will be developing an LNG export facility near Kitimat, British Columbia.

The project will help bring Canada’s natural gas supplies to a wider market including the fast growing Asian market.

Shell holds a 40% interest in the LNG Canada project, with KOGAS, Mitsubishi and PetroChina each holding a 20% interest. The proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine off-loading facilities and shipping.

LNG Canada will initially have two LNG trains, each with the capacity of 6 million tpy of LNG, with an option to expand the project in the future.

The partners will decide whether to move ahead with the project’s development after conducting engineering work and environmental assessments, as well as consultations with local communities and other stakeholders. Start-up could come around the end of the decade, assuming all necessary regulatory approvals and investment decisions.

Adapted from press release by Peter Farrell.

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