Canada's LNG project gets green light

Article by Amanda Doyle

Aerial view of the LNG Canada site

A large-scale LNG project in Canada has been given the final go-ahead by project partners.

The LNG Canada project is a joint venture between Shell, Petronas, PetroChina, KOGAS, and Mitsubishi, and all stakeholders have now given final investment decisions on the project.

LNG Canada is the single largest private investment project in Canadian history. According to Reuters, the overall cost wasn’t disclosed in current statements but previous estimates were around C$40bn (US$31bn). The facility will ship LNG to Asian markets faster than exports from the US Gulf as the shipping route is only half that from the Gulf. The facility will consist of two processing units, known as trains, with a total capacity of 14m t/y, with the possibility of extending this to four trains. Construction is expected to start immediately and first gas is expected before 2025. A joint venture between Fluor and JGC will provide the engineering, procurement, fabrication and construction on the project.

Ben van Beurden, CEO of Shell, said: “We believe LNG Canada is the right project, in the right place, at the right time. Supplying natural gas over the coming decades will be critical as the world transitions to a lower carbon energy system. Global LNG demand is expected to double by 2035 compared with today, with much of this growth coming from Asia where gas displaces coal."

Tan Sri Wan Zulkiflee Wan Ariffin, CEO of Petronas, said: "The final investment decision with our joint venture participants is a significant milestone for Petronas and for the energy industry in Canada. The decision is a testimony of the strong collaboration among our partners and stakeholders who share the same aspiration of delivering long-term value via LNG, in line with our commitment to sustainable and responsible development of resources.”


Article by Amanda Doyle

Staff Reporter, The Chemical Engineer

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