LNG Canada announces FID, project moving immediately into construction

LNG Canada Announces a Positive Final Investment Decision

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With support from First Nations, the community, all levels of government, business, labour and countless individuals and organizations, LNG Canada has been given the green light from our joint venture participants to move our LNG export facility forwards into construction.

Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – the joint venture participants – announced their Final Investment Decision on October 1, 2018.


“The Final Investment Decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects. This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous reconciliation.”
—Andy Calitz, CEO LNG Canada

 

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From a list of 500 possible sites to locate a large-scale LNG export terminal, LNG Canada selected Kitimat in northern British Columbia, in the traditional territory of the Haisla Nation.

Each joint venture participant will be responsible to provide its own natural gas supply and will individually offtake and market its share of LNG.  The project will initially export LNG from two processing units or “trains” for an estimated 14 million tonnes per annum (mtpa), with the potential to expand to four trains in the future.

LNG Export Facility Rendering
LNG Export Facility Rendering

A project of importance to all of Canada

LNG Canada is a significant project and represents the largest energy investment in Canadian History. Kitimat and other northern communities, British Columbia and Canada will all benefit from LNG Canada proceeding.

LNG Canada’s export plant has been designed to achieve the lowest carbon intensity of any large-scale export facility operating in the world today. We achieved this through a combination of using renewable hydropower from BC Hydro and highly-efficient gas turbine engines.

A new market for BC’s natural gas

To get the natural gas from the Montney basin in the north of the province to Kitimat, LNG Canada has contracted with TransCanada, who will build, own and operate the 670-km Coastal GasLink pipeline. Between the plant and the pipeline, approximately 10,000 people will be employed during construction. LNG Canada is committed to hiring local, within BC and across Canada, and does not foresee requiring a large number of workers from outside the country. Natural gas will find a new market, helping Asian countries with the transition from coal to LNG.

To limit the impact of a large influx of people on the Kitimat community, LNG Canada is building Cedar Valley Lodge – a workforce accommodation centre adjacent to work site, which can house up to 7500 people in single room accommodation. Designed with the worker in mind, people working on the project will be provided bus transportation to site, to reduce the number of automobiles on the road and address road safety issues. For residents of Terrace that work on the construction of the facility, shuttle bus transportation will be provided.

Skilled trades and apprentices can begin and advance their careers

Construction is estimated to take approximately five years, at which time LNG Canada will provide natural gas to countries where imported gas could displace more carbon intensive energy sources and help address global climate change and air pollution. JGC Fluor is the engineering, procurement and construction consortium LNG Canada selected to construct the plant. While construction will begin immediately, a relatively small number of workers will be required at the beginning, with ramp up to a larger workforce beginning in about 18 months from FID.