Shell partners with Asian energy firms for Canadian LNG project

Shell Canada has formed a partnership with three Asian global energy firms to develop a proposed liquefied natural gas (LNG) export facility near Kitimat in British Columbia, Canada.

The company will own a 40% stake in the project, named LNG Canada, with Korea Gas Corporation, Mitsubishi and PetroChina holding a 20% interest each.

Shell Canada LNG Americas vice president Jose-Alberto Lima said, "Our combined expertise, and our focus on technological innovation in delivering safe and environmentally sound LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and increase access to new export markets for Canada."

PetroChina Company vice president Bo Qiliang said, "This project will contribute to a further strengthening of trade relationships between China and Canada and will help China use clean burning natural gas to fuel its economic growth.

The proposed project would entail the design, construction and operation of a gas liquefaction plant and storage and export facilities of LNG, including shipping and marine off-loading facilities.

LNG Canada will initially handle two LNG processing units referred to as ‘trains’, each with the capacity to produce six million tonnes per annum, and will later be expanded to handle four trains to generate 24 million tonnes per annum, according to PetroChina.

The project will deliver the Canadian natural gas to growing markets around the world, and would be economically feasible for the province, First Nations, local communities and the region, Shell stated.

Image: Shell’s export facility will be built near Kitimat, British Columbia. Credit: Sam Beebe