LNG

The British Columbia Environmental Assessment Office has filed an updated report comprising 170 pages plus detailed maps on the relaunched Chevron-led Kitimat LNG export project planned for Bish Cove on Canada’s Pacific Coast.

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.

Royal Dutch Shell has outlined the main reasons why it had a compelling case for proceeding with the LNG Canada export project in British Columbia and it would come on stream at the site in Kitimat at a time of high global demand.

JGC Corp Chairman and Chief Executive Masayuki Sato, whose company was awarded the LNG Canada contract, said the engineering, procurement and construction business was now surging ahead and a high level of performance was crucial for all contractors worldwide.

LNG Canada, the export project in British Columbia led by Royal Dutch Shell, is expected to announce a final investment decision to progress with the joint venture to turn the huge surplus Canadian natural gas into LNG and ship it to nations such as China and South Korea,

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.