LNG

LNG Canada, the Shell-led project in the province of British Columbia, has named Shell executive Jason Klein as the new Chief Executive of the project, now described as 60 percent complete and also moving onto gas-processing infrastructure development to join with the Coastal GasLink.

Shell said Klein joins LNG Canada from Shell Canada, where he served as Vice President of Canada Integrated Gas. Klein replaces outgoing CEO Peter Zebedee.

The company said Klein brought to the position “a wealth of experience and a deep understanding of LNG, its role in the global energy transition to lower carbon energy and the part LNG Canada will play” in that transition.

The UK-based major noted in the statement that the project at Kitimat in BC was the largest private investments in Canadian history and was a long-life asset with a 40-year export licence that will initially produce 14 million tonnes per annum of LNG for export.

“I’m excited to join the team, especially at this time with construction in Kitimat progressing steadily and safely towards completion and the organization preparing for decades of successful operations,” explained Klein.

“LNG Canada and its joint venture participants are committed to setting the benchmark for economically, environmentally and socially responsible LNG development in Canada, creating a positive and lasting legacy with First Nations, the local community and all British Columbians based on our values of safety, collaboration, respect and transparency,” he stated.

Upstream to LNG

Klein began his career with Shell in 2016, following its global acquisition of BG Group where Jason held assignments in the Middle East, Europe, North America and Australia in roles spanning the legal function, upstream operations and LNG developments over a period of 13 years (starting in 2003).

“Following the BG takeover, Klein became Vice President US LNG within Shell’s Integrated Gas business, responsible for leading its development of the Elba Island LNG project near Savannah, Georgia,” added the Shell statement.

He has a Bachelor of Science in Finance from Trinity University in San Antonio in Texas and a Doctorate in Jurisprudence from the University of Texas School of Law.

“Jason takes over accountability for LNG Canada at a very important and active time,” said Susannah Pierce, Shell Canada President and Country Chairperson.

“He has extensive background in natural gas and LNG and a commitment to ensuring LNG Canada’s relationships with First Nations, communities and other stakeholders remain strong and resilient,” added Pierce.

LNG Canada remains on track and there are currently around 5,000 Canadians employed at its Kitimat site.

A huge natural gas inlet module that will take volumes off the Coastal GasLink pipeline arrived on site in March and marked what the company said was the “next phase” of development. 

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.

April 12 (LNGJ) - LNG Canada, the Royal Dutch Shell-led joint venture in British Columbia, said that Chief Executive Andy Calitz would step down on July 1 to be replaced by another Canada-based Shell executive Peter Zebedee. The announcement comes six months after LNG Canada’s positive final investment decision to build the export plant near the town of Kitimat. Calitz and successor Zebedee have worked for Shell for much of their careers.

   Calitz, who was educated and began his energy industry career in South Africa, began working for Shell in 1996 and has led the LNG Canada project for six years. He is scheduled to return to Shell’s headquarters in The Hague when he leaves his post. Zebedee currently works for Shell in the Canadian city of Edmonton in Alberta and will relocate to BC.

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.