LNG Canada targets FID in 2018 unfazed by government change
Shell-led LNG Canada project is targeting a final investment decision in 2018 for the construction of the liquefied natural gas export facility in Kitimat, British Columbia.
Speaking to Reuters, LNG Canada’s chief executive, Andy Calitz, said works on the C$40 billion ($31.8 billion) project are unaffected by the Petronas’ decision to cancel its Pacific NorthWest LNG project, or the government change.
The projects aims to begin construction in 2018, Calitz said noting it would require an FID during the next year.
Shell holds a 50 percent stake in the project, with other partners being PetroChina, Kogas and Mitsubishi Corporation.
The FID was delayed last year by the project partners as they looked to reduce the cost in response low prices. The project has already received key regulatory approvals and completed key site preparation activities.
Construction of the first phase of the project will take approximately five years to complete the first two of four LNG trains with capacity to produce 6.5 million tons of LNG per year each. The facility would later be expanded with the addition of two more trains, for a total estimated production capacity of 26 mtpa.
The province of British Columbia has also recently received a new government, which plans to halt the construction of an oil pipeline, however, Calitz said LNG Canada held talks with the New Democratic Party (NDP) and received support for the industry.
He also added that the project has contracted four engineering consortia after initially working with only one, hoping the competition would reduce the facility costs by some 20 percent.
1 CAD = 0.795388 USD
LNG World News Staff