July 13, 2016 [OPIS] - LNG Canada said that its joint venture participants will delay a final investment decision originally planned for the end of 2016.
Shell is the biggest partner in the joint venture at 50%. Other participants are PetroChina (20%), Mitsubishi Corporation (15%) and Kogas (15%).
The joint venture proposal involves the construction of an LNG export terminal in Kitimat, British Columbia (BC), at the head of the Douglas Channel. The site was chosen to be as far inland as possible to reduce the amount of pipeline required to connect the export terminal to the province’s natural gas reserves.
The LNG Canada facility is designed to include a natural gas receiving and LNG production facility that will connect to a marine terminal with enough capacity to hold two LNG carriers between 140,000 and 265,000 cubic meters. With the selected port free of ice year-round, LNG Canada predict they will be capable of receiving 350 LNG carriers annually, if constructed.
LNG Canada said the project remains “a promising opportunity” and stressed its First Nations’ and stakeholder support, its regulatory approvals, the existing commercial and engineering contracts to design and build the project, and the partnership with Coastal Gas Link for pipeline right-of-way.
“Our project has benefitted from the overwhelming support of the BC Government, First Nations — in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it,” said Andy Calitz, CEO LNG Canada.
In a press release, Shell said that the joint venture participants saw global industry challenges and capital constraints as a reason for a postponement. There is no confirmed deadline for a final decision.
