LNG Canada Delivers Positive Investment Decision
Investors have given final approval for LNG Canada's project at Kitimat.
The five partners have agreed to the $40-billion joint venture that includes a gas liquefaction plant in Kitimat and a 670-kilometre pipeline delivering natural gas from the peace region.
The partners, Royal Dutch Shell, Mitsubishi Corp., the Malaysian owned Petronas, PetorChina Co. and Korean Gas Corp., delayed the final investment decision in 2016 citing a drop in natural gas prices.
But with the final investment decision, each company will be responsible to provide its own natural gas supply and will individually market its share of LNG.
The decision is for two processing units with first LNG expected before the middle of the next decade.
LNG Canada CEO Andy Calitz says the project has received support from the B.C. government, local First Nations and the Kitimat community.
In a news release, the District of Kitimat said they congratulate LNG Canada and it's joint venture participants on the decision to begin the largest private sector investment in Canadian history.
Mayor Phil Germuth says he's thrilled by the decision, and he's excited to see the culmination of many years of hard work between the District, LNG Canada, the Haisla Nation, and many other communities.
With demand for LNG expected to double by 2035 compared with today as a result of global commitments to reduce greenhouse gas emissions and improve air quality, LNG Canada will provide natural gas to countries where imported gas could displace more carbon intensive energy sources and help to address global climate change and air pollution.
Prime Minister Justin Trudeau says the announcement is a vote of confidence in a country that recognizes the need to develop energy in way that takes the environment into account.
Calitz, Trudeau, Germuth, and Priemer John Horgan will make the announcemtn official in Vancouver this morning. A watch party is being hosted by LNG Canada at the Kitimat Riverlodge starting at 8:00am.