Published: Fri, October 05, 2018
Science | By Michele Flores

Massive LNG project in northern BC reportedly given the go-ahead

Massive LNG project in northern BC reportedly given the go-ahead

The Malaysian state-owned energy firm said Royal Dutch Shell via affiliate Shell Canada Energy owns 40% of the project, while Korea Gas via wholly-owned subsidiary Kogas Canada LNG Ltd has 5%.

Royal Dutch Shell Plc. and joint-venture partners Petroliam Nasional Bhd., PetroChina Co.

Weaver said he was disappointed that the NDP had supported LNG Canada in it's bid to announce a positive FID.

"Adding such a massive new source of greenhouse gases means that the rest of our economy will have to make even more sacrifices to meet our climate targets", said Weaver.

"Record demand will be driven by the longer-term shift to natural gas in the electric and industrial sectors resulting from natural gas' competitive prices and environmental benefits".

"The LNG Canada project is a beneficiary of how we used to do things".

Construction of the initial two-train liquefied natural gas development will start immediately, with first volumes expected before 2025.

"Today is proof that a project can go through", said Karen Ogen-Toews, CEO of the First Nations LNG Alliance and former chief of the Wet'suwet'en First Nation in northern B.C.

King said he estimates a total of between 300 million and 600 million cubic feet per day of gas production has been shut down at various times this year in Western Canada because of low gas prices.

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"LNG exports and exports to Mexico by pipeline are projected to grow substantially, with LNG exports bringing the environmental benefits of our low carbon emissions to overseas customers, while providing jobs, economic benefits and stability to the US market", Jenkins said.

"This is the single largest private sector investment in the history of Canada", Trudeau said in a speech that launches the project. "I believe we can create far more jobs in other industries that won't drastically increase our emissions".

TransCanada Corporation will build, own and operate the 670 km Coastal GasLink (CGL) pipeline that will connect natural gas from northeastern British Columbia to the export plant in Kitimat.

But neither are likely to help Trans Mountain, the troubled oil pipeline project that has epitomized the country's inability to get big projects done and for which Prime Minister Justin Trudeau needs to find a buyer if it's ever to get it built.

"There are specialized components that need to be imported", Trudeau said.

With prices nearly tripling from 2016 lows to over $11 per million British thermal units (mmBtu) as demand gathers steam, the industry has regained confidence and is preparing to invest in new projects again.

Acknowledging that project development costs tend to be higher in Canada compared to the United States, Feer noted that Western Canada's LNG shipping cost advantage - no canals to transit - serves as an offset.

RBC said it estimated Canada LNG's "cost breakeven was around $8 per mmBtu".

The potential FIDs include "four mega trains in Qatar, Arctic LNG 2 in Russian Federation, at least one development in Mozambique and several U.S. projects", Wang said, while noting that 2019 "could be the busiest year" ever for LNG project sanctions.

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