Rio Tinto Sells Wharf and Land Option to LNG Canada

Rio Tinto has entered into an option agreement with LNG Canada, a joint venture comprising Shell Canada Energy, Phoenix Energy Holdings (an affiliate of Petro-China Investment), Kogas Canada LNG (an affiliate of Korea Gas Corporation) and Diamond LNG Canada (an affiliate of Mitsubishi Corporation) to acquire or lease a wharf and associated land at its port facility at Kitimat, British Columbia, Canada.

LNG Canada is proposing to construct and operate a natural gas liquefaction plant and marine terminal export facility at Kitimat.

The agreement provides LNG Canada with a staged series of options payable against project milestones. The financial arrangements are commercially confidential.

Sam Walsh, chief executive, Rio Tinto said: “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.”

Andy Calitz, vice president, LNG Canada commented: “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.”

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Press Release, February 12, 2014