Joint Venture Shell and Partners announce LNG Project in Canada

Shell and its partners, China National Petroleum Corporation (CNPC or Petro China), Koreas Gas Corporation (Kogas) and Mitsubishi Corporation (Mitsubishi) from Japan established a joint venture to design, built and operate the LNG Canada project to produce and export liquefied natural gas (LNG) out of Kitimat in British Columbia, on the West Coast of Canada.

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Shell, Petro China, Kogas and Mitsubishi signed for LNG Canada
Shell, Petro China, Kogas and Mitsubishi signed for LNG Canada
(Picture: PROCESS)

Kitimat/Canada – This project will help make Canada’s abundant supplies of cleaner-burning natural gas available to global markets including Asia’s dynamic and fast-growing economies. Shell holds a 40% interest in the LNG Canada project, with Kogas, Mitsubishi and Petro China each holding a 20 % interest.

The proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine off-loading facilities and shipping. LNG Canada will initially have two LNG processing units, or “trains”, each with the capacity to produce six million tonnes of LNG annually, with an option to expand the project in the future.

The partners will decide whether to move ahead with the project’s development after conducting engineering work and environmental assessments, as well as consultations with local communities and other stakeholders. Start-up could come around the end of the decade, assuming all necessary regulatory approvals and investment decisions.

The project announcement comes in the context of growing demand for natural gas in Asia and elsewhere, as countries look to support economic development with cleaner forms of energy.