LNG Canada is a joint venture company comprised of five global energy companies with substantial experience in liquefied natural gas (LNG) – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. Together, we are proposing to design, build and operate an LNG export terminal in Kitimat, British Columbia.
At the outset of LNG Canada’s planning we asked ourselves three questions:
- Can we build the project sustainably and reduce, as much as possible, impacts on the natural environment, including carbon emissions?
- Can we build the project responsibly and operate it safely, in a way that respects local First Nations relationship to the land and water, and the local communities’ need for a project that makes a positive contribution to its economic and social fabric?
- Can we build the project innovatively, incorporating the latest technology to keep costs down, environmental and social performance up, and provide lasting benefits to local communities, the province and the country?
Since our project’s inception in 2011, LNG Canada has worked to ensure we have been able to answer “Yes” to each of these questions.
To download an overview brochure of the LNG Canada project, click here.
Our project is well advanced, having received key regulatory approvals and completed key site preparation activities, to ensure the project is in the best place possible for a Final Investment Decision (FID). Originally scheduled for late 2016, the global energy market and the affordability of the project in that context prevented our joint venture participants from taking an FID at that time. However, they are committed to making an FID when these conditions improve and the project has demonstrated that it remains cost competitive against other investment opportunities.
During this period of delay, LNG Canada has been spending time and resources to examine ways to both protect the value already invested in the project, as well as to bring costs down, while keeping performance targets for GHG emissions and environmental performance at world-class levels.
Each of the activities LNG Canada is currently undertaking has a single objective in mind – to move the project one-step closer to an FID. As we get the site cleared and ready to move into construction, we are also reviewing every aspect of the project in an effort to remove risk from the project and deliver a project that is competitive on both a cost and scheduling basis.
We have not slowed down. Our project has been delayed and has not been cancelled. This next year is an important one to ensure our project is in the best place possible for an FID.
What is LNG?
LNG Canada is proposing to export surplus Canadian natural gas to Asian markets, and in the process, create a world-class liquefied natural gas (LNG) industry in British Columbia, Canada. Natural gas is recognized as affordable and the cleanest burning fossil fuel, as well as safe to store and transport. For countries that depend on burning coal for the majority of their energy needs, using LNG has the potential to greatly reduce their greenhouse gas emissions and significantly improve air quality. Natural gas from our LNG facility, if used to generate electricity instead of burning coal to generate electricity, could reduce global CO2 emissions by 60 to 90 million tonnes per year. This is more than the annual CO2 emissions of all of British Columbia and roughly 10 percent of Canada’s total annual emissions, so LNG plays an important role in meeting energy demands and reducing the world’s climate change challenge.
LNG is odourless, colourless, non-toxic, non-corrosive, and non-flammable.
To export natural gas, it first needs to be turned into its liquid form, which reduces its size 600-fold and makes it practical to ship via specially designed LNG marine vessels. To do this, gas is cooled to -162 degrees Celsius, at which temperature it turns into a liquid.
Why British Columbia?
Finding the right location for our proposed LNG export facility wasn’t easy. We chose British Columbia because it has the second largest natural gas reserves in Canada and is a reasonable shipping distance from Asian markets. We identified more than 500 possible locations in BC, then began the process of narrowing that number to just a handful before settling on our location in Kitimat, B.C., at the head of Douglas Channel.
Building relationships before we build our Project
Andy Calitz brings a wealth of global experience to his position of CEO of LNG Canada. Andy recognizes that it takes time to develop a project, and it takes significantly more than only meeting regulatory requirements to cross the finish line. Andy leads a professional team who also understand the importance of building strong relationships with First Nations and the local community.
From the beginning, LNG Canada set out to be the project of choice for British Columbia. We made every decision during the planning and design process keeping safety, economic, environmental and community interests top-of-mind.
We have worked closely with the community, with First Nations and with municipal and regional governments to understand how our project can help Kitimat, the region and the province of British Columbia achieve its social, economic and environmental aspirations.
Our project is located in the traditional territory of the Haisla Nation and has the potential to affect the traditional territory and communities of seven other First Nations along our shipping route.
It’s not often that a proposed energy infrastructure project meets with such strong community support. In our case, the Kitimat community and Haisla First Nation worked collaboratively to construct a parade float that visibly demonstrated their support for LNG and for our project on Canada Day 2016.
LNG Canada has benefited greatly from the generous input and local knowledge that First Nations and community residents have contributed to the many studies and reports required to complete the regulatory review process. We are also working together to ensure we reduce, as much as possible, potential environmental impacts – whether at our site or in the marine environment.
When constructed, LNG Canada’s facility will be one of the cleanest in the world from a greenhouse gas intensity perspective. We will produce less than half of the emissions of other LNG facilities currently in operations around the globe.
A record of safety and environmental performance
The LNG Canada project will meet some of the strictest regulatory standards in the world for both safety and environmental protection. Our facility will be among the most modern, and include a number of safeguard systems to protect against incidents – including alarms and multiple back-up systems. As part of the regulated Environmental Assessment process, we studied potential environmental effects on people, water, air and land. We also looked for ways to minimize greenhouse gas emissions from the proposed facility – a priority in our planning process and environmental assessment.
The safety record of the industry – more than 50 years without a single cargo loss, and a product that evaporates rather then spills – makes LNG a product that is embraced by the community of Kitimat and to the Haisla First Nation, on whose land we are proposing to build the project.
We’d like to hear from you.
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