Canada: Shell Consortium Gets Nod for LNG Export Licence
Joe Oliver, Canada’s Minister of Natural Resources, announced the approval of a long-term export licence to LNG Canada Development Inc. to export liquefied natural gas from the terminal proposed by the Shell consortium in Kitimat.
LNG Canada is a joint venture comprising Shell, Korea Gas Corp., Mitsubishi Corp. and PetroChina International.
This announcement represents the latest milestone demonstrating how responsible development of Canadian natural gas is benefiting jobs and long-term prosperity in British Columbia and across our country. The Minister was joined by Ellis Ross, Chief Councillor of the Haisla Nation, and Anders Ekvall from Shell Canada.
“The Harper Government is aggressively working to open new markets for Canadian natural resources in the fastest-growing region of the world,” said Minister Oliver. “Today’s announcement is the latest milestone in our efforts to support Canadian jobs and generate critical revenue that funds social programs such as health and education.”
Currently, 100 percent of Canada’s natural gas exports are to the United States. However, global energy demand is expected to increase by 35 percent between 2010 and 2035, and Canada is well poised to support that demand. The approval of the licence demonstrates the momentum of Canada’s burgeoning liquefied natural gas industry and the efforts underway to access world markets.
Aboriginal communities are benefiting from resource development across Canada. The natural resource industry currently supports 31,000 Aboriginal jobs across the country — making natural resources the largest employer of Aboriginals in Canada. In British Columbia, the Haisla Nation is actively collaborating to find sustainable opportunities for their people.
“The Haisla people are pleased to see today’s announcement and a further step forward in this project,” said Chief Ross. “We are excited by the economic opportunities presented by the project and what those benefits will mean to improving the lives of our people and helping us stand on our own. We appreciate the relationship we have with Shell and look forward to working closely with the project, Canada and B.C. as Canada establishes strong marine protection safeguards and capabilities.”
The LNG Canada licence is the third long-term licence issued since 2011. This 25-year licence allows for up to 24 million tonnes of LNG to be exported per year, making it the largest licence awarded to date. If this project and the four other proposed LNG projects for B.C. go forward, they could generate more than $1 trillion in economic activity over the next 30 years.
“Shell and our partners in LNG Canada — KOGAS, Mitsubishi, and PetroChina — are very pleased about today’s announcement,” said Anders Ekvall, Shell’s Vice-President of LNG Americas. “This is an important project for our respective companies and for British Columbia and Canada. It will support the diversification and growth of Canada’s energy markets, and we are committed to developing this project in a way that creates socio-economic benefits for the Haisla and other First Nations, B.C. and Canada. We also recognize this important milestone is just one of the major regulatory approvals that will be required to make the project a reality, including a comprehensive environmental assessment. We will continue to work closely with First Nations, local communities, and the federal and provincial governments to meet social and environmental expectations.”
LNG World News Staff, February 26, 2013; Image: LNG Canada