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

Kent, Harrison prepared for snow

Municipalities ready snow clearing strategies heading into colder months

Chilliwack school kids draw ‘don’t drink and drive’ messages on liquor store bags

Children from six elementary schools decorate bags as part of promotion created by local Mountie

Strong winds to hit B.C.’s south coast

Western regions may see winds of up to 80 km/hr

Duo robs Harrison Hot Springs gas station

Husky manager planning to tighten security

Story of the Year: Deadly Humboldt Broncos bus crash

The Canadian Press annual survey of newsrooms across the country saw 53 out of 129 editors cast their votes for the Humboldt Broncos bus crash.

Retailers feel the squeeze of their generous return policies

Technology data tracking can clamp down on fraudulent abuse

Canadians to get low-cost data-only mobile phone plans within 90 days: CRTC

Bell, Rogers and Telus will provide plans as cheap as 250MB for $15

5 to start your day

B.C.’s top cop says Surrey needs more Mounties, nublication ban lifted on name of girl killed in Abbotsford school stabbing and more

Police have ‘viable suspects’ in B.C. gangster’s 2017 murder

Crown prosecutor Neil Wiberg was successful in asking a judge to extend the length of time police can hold onto exhibits seized in connection with the homicide.

Man rescued from sinking boat off the coast of Vancouver Island

Mayday call came into Coast Guard saying vessel had taken on water, BC Ferries dispatched to scene

Four per cent of Canadian women report being sexually harassed in the workplace

One per cent of men report being sexually harassed in the workplace

Stricter drunk driving laws to take effect across Canada today

It gives police officers the right to ask for a breath sample from any driver they lawfully stop

Winter storm warning issued for Coquihalla highway

Total snow accumulations of 40-50 cm expected by Wednesday

Most Read