Premier Christy Clark

Big LNG investors endorse B.C. plan

Shell, PetroChina, Korea Gas and Mitsubishi still up to two years from final commitment to Kitimat-based project

The biggest players in B.C.’s liquefied natural gas export proposal are still more than a year away from final commitment, but their latest step forward is a vote of confidence, according to the CEO of LNG Canada.

Representatives of Shell Canada, Korea Gas, Mitsubishi and PetroChina announced signing of a joint venture agreement for the LNG Canada project in Vancouver Wednesday, with Premier Christy Clark and Natural Gas Minister Rich Coleman on hand.

LNG Canada CEO Andy Calitz cautioned that a final investment decision depends on completion of reviews by B.C.’s Environmental Assessment Office and Oil and Gas Commission. The companies will now begin engineering work, and those steps will take another 18 to 24 months, Calitz said.

The partnership includes an increase in Shell’s stake to 50%, with PetroChina retaining 20% and Mitsubishi and Korea Gas reducing their shares from 20% to 15. Calitz said the companies have other projects in development in Africa, Australia, Russia and elsewhere, and the change does not reflect any loss of confidence in B.C.

Calitz acknowledged the B.C. government’s commitment to increase industrial skills training in the school and apprenticeship system, announced Tuesday.

Clark also announced she is leaving Friday for her fifth trade mission to Asia, with stops in Malaysia, Singapore and Hong Kong, mainly to promote LNG development.

Calitz said there are international factors affecting the export price, but LNG Canada is looking beyond Asia to other world markets.

There are three key factors in deciding whether to commit to the Kitimat project, Calitz said. They are shifts in the gas price in Asia, the supply and cost of labour to build the plant and pipelines, and construction of gas pipelines through the Rocky Mountains.

The companies have an agreement with TransCanada to build a pipeline, and gas production underway in the Horn River, Montney, Cordova and Liard shale formations in northeastern B.C.

 

Just Posted

Christmas Seals campaign helps British Columbians breath easier

One in five Canadians have lung disease such as COPD or asthma

Hope and Area Transition Society planning vaping info sessions

Family-focused events to be held throughout January

Hope’s illicit drug death rate rivals Vancouver

Small Fraser Valley district listed among top five per capita in B.C.

Westbound Highway 1 crash in Langley

Accident occurred just west of 264th Street shortly before 6 a.m.

No defence witnesses in trial of man charged in killing of Abbotsford student

‘Change of instructions’ results in defence closing case without calling evidence

VIDEO: Merriam-Webster declares ‘they’ its 2019 word of the year

Declared word of year based on a 313-per-cent increase in look-ups on the company’s search site

Man facing two sexual assault charges after groping incident on SkyTrain

Transit Police tracked down the suspect on a pedestrian overpass

Uptick in people buying illegal amphibians causing concern for B.C. vet

Without permits, he can only send them to zoos.

Anti-money laundering agency warns casinos to watch gamers playing with bank drafts

Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, issues operational alert

‘Jurassic World 3’ will film in Metro Vancouver under working title ‘Arcadia’

Filming is set to take place between Feb. 24 and March 6, 2020

Strata rental bans escape B.C. speculation tax through 2021, Carole James says

Vacant home tax won’t apply to cabins accessible only by water

Seven arrested in 20-man fight between rival gangs in Vancouver

Seven men were arrested but have since been released with no charges filed

SkyTrain strike averted after ‘eleventh-hour deal’ reached

CUPE 7000 says ‘marathon bargaining session’ led to tentative agreement with BC Rapid Transit

Most Read