PetroChina and International Energy Firms Launch LNG Canada
OREANDA-NEWS. June 05, 2012. Beijing–PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857), Shell Canada Ltd., Korea Gas Corporation (KOGAS), and Mitsubishi Corporation today announced they would jointly develop a proposed liquefied natural gas (LNG) export facility near Kitimat, British Columbia, Canada. Shell holds a 40-percent working interest, with KOGAS, Mitsubishi and PetroChina each holding a 20-percent working interest.
The proposed LNG Canada project would include the design, construction and operation of a gas liquefaction plant, and facilities for the storage and export of liquefied natural gas, including marine off-loading facilities and shipping. LNG Canada will initially consist of two LNG processing units referred to as “trains”, each with the capacity to produce six million tons of LNG annually, with an option to expand the project to a total of four trains or 24 million tons per annum (mtpa). The co-venturers decision to move the project into development could be taken around the middle of the decade, with start up around the end of the decade, pending regulatory approvals and investment decisions. This also begins an extensive consultation process with First Nations and local community residents regarding the project.
The demand for natural gas, the cleanest burning fossil fuel, remains high in Asia and other markets. LNG Canada project brings together the four companies’ extensive development experience, technical depth, financial strength and access to markets required to be the leading LNG developer in Canada. LNG Canada would deliver a project that offers a new source of competitively priced LNG to global markets. LNG Canada would create significant economic benefit for First Nations, local communities, the region and the province. It would create thousands of jobs created during construction and hundreds of full-time, permanent jobs during operations, as well as related economic development opportunities that a significant energy infrastructure project brings to the region.
"Our combined expertise, and our focus on technological innovation in delivering LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and new export markets for Canada,” says Jose-Alberto Lima, Shell’s Vice President LNG Americas.
"As the world’s largest operator of LNG import terminals, we recognize the potential value of the LNG Canada project for our company and for British Columbia, and look forward to conducting business in B.C. with respect for all local residents and their traditions, ” said Mr. Young Sik Kwon, Vice President of Korea Gas Corporation.
"We have a history of working with our Joint Venture partners, as well as conducting business in Canada,” said Junichi Iseda, Senior Vice President, Mitsubishi Corporation. “We look forward to continuing to invest in Canada through this project for creating economic growth and strengthening new, important trade links between our two nations.”
"PetroChina has strong confidence in the future of the LNG Canada project. This project will contribute to a further strengthening of trade relationships between China and Canada and will help China use clean natural gas, boosting company’s business.” said Bo Qiliang, Vice President, PetroChina Company Limited.