LNG Canada Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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LNG Canada is a proposed LNG terminal in British Columbia, Canada. It is currently under construction.[1]

Location

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Project Details

  • Owner: LNG Canada
  • Parent: Shell (50%), China National Petroleum Corporation (20%), Korea Gas (15%), Mitsubishi (15%)
  • Location: Kitimat, British Columbia, Canada
  • Coordinates: 54, -128.7 (approximate)
  • Capacity: 14 mtpa (7 mtpa per train)[2]
  • Status: Construction
  • Type: Export
  • Trains: 2
  • Start Year: Before 2025
  • Financing: CAN$275 million from the Canadian government, other financing still to be confirmed

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Shell's LNG Canada Terminal is a proposed LNG facility in British Columbia, Canada.[3] It will include two processing trains, with room to add two more trains in the future, for a possible total of four trains.[4] It received the required regulatory approvals from the government in 2015.[5]

"Shell is one of the biggest players in the global LNG market, so it’s no surprise that the corporation hoped to expand its holdings with a major facility in BC. Other big names attached to the LNG Canada project include PetroChina, China’s biggest oil producer; South Korea’s KOGAS, one of the world’s largest LNG importers; and Mitsubishi, which invests in LNG production in “host countries” and acts as an import agent for Japanese customers. The companies announced in July 2016 that they would indefinitely delay a final investment decision, and in mid-2017, announced that a final investment decision would be made “in the next 18 months or so.” If the proposal resumes, the backers hope to produce 24 million metric tons of LNG per year, using gas from the proposed 670-kilometer Coastal GasLink pipeline leading from Dawson Creek in northeastern BC. The National Energy Board has extended LNG Canada’s export license from 25 to 40 years," according to the Sightline Institute's 2018 report, "Update: Mapping BC’s LNG Proposals."[6]

The estimated cost of the LNG Canada terminal is US$31 billion, making it the largest single private sector investment in Canada's history. The final investment decision for the project was announced in October 2018, though precise financing contributions from Japanese and/or other sources have not yet been disclosed other than a CAN$275 million investment from the Canadian government pledged in June 2019.[7]

Construction activities began in October 2018, with a target in-service date of the middle of the next decade.[8]

In February of 2020, the terminal was reported to still be under construction.[9]

In March 2020, the company announced that it is cutting its workforce in half as a precautionary measure against the Coronavirus and to help local communities deal with the outbreak. The cuts are being made to construction workers flying in on rotation though could be extended to cutting back staff numbers to levels required for only maintaining site security and environmental controls.[10]

In April 2020, Lloyd’s Register was chosen for a 55-month contract to support LNG Canada with the construction and delivery of the new LNG terminal.[11]

In April 2020, developers submitted an application for approval under the provisions of the Environmental Management Act. The application requested that developers be allowed to dispose of water from the construction and excavation of the new heavy haul road within the oxbow wetland into a nearby wooded area.[12]

Opposition

There have been substantial delays to the nearby project, Jordan Cove LNG Terminal, as protesters across Canada blockaded commuter and freight railways in solidarity with the Wet’suwet’en hereditary chiefs who have opposed the Coastal GasLink Pipeline, which would connect gas fields in northern B.C. with LNG Canada. There had been over 20 proposed LNG export projects proposed on the B.C. coast, but so far LNG Canada is the only project that is under construction, while other projects have been abandoned or delayed.[9]

Articles and resources

References

  1. Government of Canada Invests in Kitimat LNG Facility The Maritime Executive, June 27, 2019
  2. 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  3. Shell British Columbia LNG Terminal, A Barrel Full, accessed April 2017
  4. LNG Canada Wikipedia, accessed July 18, 2019
  5. Government of Canada Invests in Kitimat LNG Facility The Maritime Executive, June 27, 2019
  6. "Update: Mapping BC's LNG Proposals" Sightline Institute, January 2018
  7. "Government of Canada investing $275M in $40B Kitimat LNG complex," Green Car Congress, Jun. 27, 2019.
  8. Government of Canada Invests in Kitimat LNG Facility The Maritime Executive, June 27, 2019
  9. 9.0 9.1 Geoffrey Morgan, Another Canadian LNG project blocked as hits keep coming for natural gas producers Calgary Herald, February 27, 2020
  10. LNG Canada says it's cutting its workforce in half to protect local communities from COVID-19 Vancouver Sun, Mar 18, 2020
  11. [1] LNG Industry, Apr. 7, 2020
  12. Environmental Protection Notice - application for approval LNG Canada, April 3, 2020

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