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LNG Canada takes Final Investment Decision on Kitimat facility

LNG Canada, along with its joint venture partners Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS, have announced the completion of a Final Investment Decision (FID) to build an LNG Canada export facility in Kitimat, British Columbia. Process Industry Forum explains what this means for the LNG industry.

LNG Canada has worked towards this FID since it first identified Kitimat from a list of 500 potential sites in British Columbia as the ideal location for an LNG export facility. Their export plant has been designed to achieve the lowest carbon intensity of any largescale LNG plant operating in the world today, thanks to a combination of renewable hydropower from BC Hydro and highly-efficient gas turbine engines.

Single largest private sector investment project in Canadian history

“The Final Investment Decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects,” said Andy Calitz, CEO of LNG Canada. “This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous interests.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada added: “Today’s announcement by LNG Canada represents the single largest private sector investment project in Canadian history. It is a vote of confidence in a country that recognizes the need to develop our energy in a way that takes the environment into account, and that works in meaningful partnership with Indigenous communities.”

Demand for LNG expected to double by 2035

Each joint venture participant will be responsible for providing its own natural gas supply and will individually offtake and market its share of LNG. The FID is for two processing units or “trains,” with the first LNG reserves expected before the middle of the next decade.

B.C. Premier John Horgan said: “The critical importance of this project is what it represents – the intersecting of economic development, jobs for local workers, partnerships with Indigenous communities and forward-looking climate leadership. We're delighted the global business community sees British Columbia as a natural home for this kind of investment."

With demand for LNG expected to double by 2035, 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.

Canada takes its place on the global map of LNG exporting countries

LNG Canada is advantaged by access to abundant, low-cost natural gas from British Columbia’s vast reserves and the relatively short shipping distance to North Asia, which is about 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal. The LNG Plant will be constructed on a large, partially-developed industrial site with existing deep-water port, roads, rail and power supplies.

Andy Calitz concluded: “We look forward to helping Canada take its place on the global map of LNG exporting countries and want to recognize the important role played by all levels of government, First Nations and the many people that supported LNG Canada to help us get to an FID. We also thank our joint venture participants for their trust in our ability to deliver a cost-competitive and reliable source of LNG for their global portfolios.”

For more information visit www.lngcanada.ca.

Company Profile

LNG Canada

LNG Canada is a significant project and represents the largest energy investment in Canadian History. LNG Canada’s export plant has been designed to achieve the lowest carbon intensity of any large-scale export facility operating in the world today. We achieved this through a combination of using renewable hydropower from BC Hydro and highly-efficient gas turbine engines.

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