LNG

LNG Canada, the export project in British Columbia, has provided one of the greatest reconciliations ever between Canada and its indigenous peoples in terms of economic participation and is also helping to carry the province out of the Covid-19 slowdown.

LNG Canada, the Royal Dutch Shell-led export joint venture in British Columbia, said that it was unlikely the continuing dispute over the Coastal GasLink feed-gas pipeline would stop the overall project advancing to completion.

“I do not see a single scenario that would cause the construction of this pipeline to be stopped,” said Andy Calitz, LNG Canada’s Chief Executive.

Opponents have mounted a legal challenge saying the pipeline was a federal undertaking and should have sought approval from the National Energy Board, rather than the province of British Columbia.

The federal regulator agreed in December to consider the jurisdictional challenge and has requested evidence from all the parties.

“It’s a complex world, the paths are not clear,” said Calitz, pointing out that any decision by the federal regulator could later be appealed in the courts.

“But what I am clear about is that this pipeline, by the time that happens, will be in advanced construction,” stated Calitz.

The LNG Canada project is the largest private sector investment in Canada's history with spending of C$40 billion (US$30.2Bln).

Shell and its four partners, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., had agreed in October 2018 to start immediate construction at the brownfield site near Kitimat that had been an energy products terminal before being acquired by Shell in 2011.

Shell was pressing ahead while recognizing that it was likely not possible to get unanimous support for a major infrastructure venture project in BC.

Calitz has said he believed that the Canadian economy would find it difficult to prosper without a growing and healthy resource sector.

The US$5-billion pipeline of 670 kilometres is being developed by TransCanada Corp. to bring the feed-gas from the Montney shale basin in northeast BC to the Pacific Coast.

TransCanada is also seeking to sell a stake in the pipeline project. Calitz said that the pipeline company’s stake sale was expected and did not reflect concerns about greater risk.

“It has always been a part of the financing strategy for the project,” Calitz said.

“The sale plan has no impact on either the construction or the capacity or any other aspect of the project,” he added.

LNG Canada, the Royal Dutch Shell-led export joint venture in British Columbia, said Shell was pressing ahead while recognizing that it was likely not possible to get unanimous support for a major infrastructure venture project in the Canadian province.

Andy Calitz, Chief Executive of LNG Canada, said he believed that the Canadian economy would find it difficult to prosper without a growing and healthy resource sector.

“Projects like our own provide an opportunity that many First Nations and northern communities have not had before and may not see again,” said Calitz.

Calitz was speaking after protests and arrests in the province over the construction of the Coastal GasLink feed-gas pipeline to connect with the LNG Canada liquefaction plant proposed for the town of Kitimat.

The US$5-billion pipeline of 670 kilometres is being developed by TransCanada Corp. to bring the feed-gas from the Montney shale basin in northeast BC to the Pacific Coast.

The LNG Canada project is the largest private sector investment in Canada's history with spending of C$40 billion (US$30.2Bln).

Shell and its four partners, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., had agreed in October 2018 to start immediate construction at the brownfield site near Kitimat that had been an energy products terminal before being acquired by Shell in 2011.

“With a final investment decision made in October providing a green light to both the LNG Canada export facility and Coastal GasLink’s pipeline to proceed into construction, the years of work with First Nations, including elected and Hereditary Chiefs, municipal, provincial and federal governments, northern communities, and thousands of people working in industry in BC, came to fruition,” explained Calitz.

“The level of support received by LNG Canada and Coastal GasLink has been described as unprecedented for a resource development project,” he said.

“Despite opposition Coastal GasLink is currently facing, LNG Canada has every intention to continue to advance our project and maintain our construction schedule to deliver jobs and economic benefits to First Nations, local residents and British Columbians,” added the LNG Canada CEO.

“We are also conscious that any delay can erode confidence in British Columbia and Canada to deliver energy projects. We recognize it may not be possible to get unanimous support for a major infrastructure project in BC, but we believe Canada’s economy cannot prosper without a growing and healthy resource sector,” the CEO said.

“There needs to be recognition and respect for the decisions that have been made by 25 First Nations, their members, northern communities and the individuals living there that have put considerable effort and due diligence to come to a decision to support our project,” stated Calitz.

LNG Canada, the project in British Columbia led by Royal Dutch Shell, is still on track to move forward in the fourth quarter of 2018 as the nation’s energy sector struggles in the wake of the booming US energy business.

LNG Canada, the largest export project proposed for the Pacific Coast province of British Columbia, could hold a ground-breaking ceremony before the end of 2018 as the joint venture led by Royal Dutch Shell gets back on track.