LNG Canada set to make final decision this year


LNG Canada is hoping for a final investment decision on its $40 million liquefied natural gas facility at Kitimat later this year. Should that decision be positive, the company hopes to begin construction this year as well.

Company CEO Andy Calitz made the comments during the Globe conference in Vancouver and the comments were reiterated on its Facebook page (see below).

The company delayed a final investment decision in 2016 and at that time Calitz stressed the project was delayed, not cancelled.

The global energy market in 2016 and the affordability of the project in that context prevented the company from making a final investment decision at that time.

“We have not slowed down,” reads the front page of the company’s website. “Our project has been delayed and has not been cancelled.”

In February LNG Canada announced it had notified two of its four potential engineering, procurement and construction contractors that they have been shortlisted for the chance to build the company’s proposed LNG export facility in Kitimat. A February 2 news release states that LNG Canada intends to select the preferred contractor sometime in 2018. LNG Canada identified the finalists as the partnership of TechnipFMC plc and KBR, Inc. (LNG BC Contractors), and the partnership of JGC Corporation and Fluor Corporation.

“This process is critical in LNG Canada’s pursuit of the level of competitiveness required to support a future final investment decision by our joint venture participants,” said Calitz in the February 2 news release. “A tremendous amount of time and effort has been invested by the four EPC consortia, as well as by LNG Canada’s internal review team, and I thank them all for their contributions to the RFP process thus far.”

LNG Canada is a joint venture comprised of Shell Canada Energy (50 per cent), an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina (20 per cent), Korea Gas Corporation (15 per cent) and Mitsubishi Corporation (15 per cent). The joint venture is proposing to build an LNG export facility in Kitimat that would initially consist of two LNG processing units referred to as “trains”, each with the capacity to produce at least 6.5 mtpa of LNG annually. The project would include an option to expand in the future to four trains.