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Shell, partners approve $31 billion project to speed gas to Asia

October 1, 2018 4:38 PM
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Royal Dutch Shell Plc and its four partners have agreed to invest in a multibillion-dollar liquefied natural gas project in western Canada — the largest new one of its kind in years that would carve out the fastest route to Asia for North American gas.

LNG Canada — comprised of Shell, Malaysia’s Petroliam Nasional Bhd, Mitsubishi Corp., PetroChina Co. and Korea Gas Corp. — is set to announce a final investment decision on the $31 billion project as early as Monday, said people with direct knowledge of the plans, who asked not to be identified because the matter isn’t public. The exact timing still hasn’t been decided. PetroChina and Korea Gas announced approvals of their share of the investment on Friday. The others partners declined to comment.

The project marks a turning point for Canada and the gas industry. Set to be the nation’s largest infrastructure project ever, LNG Canada augurs a new wave of investments for major gas export projects after a three-year hiatus forced by a global supply glut. LNG Canada will be able to send cargoes from Kitimat, British Columbia to Tokyo in about eight days versus 20 days from the U.S. Gulf.

It’s also a welcome boost for Canadian Prime Minister Justin Trudeau. LNG Canada promises better prices for the country, whose energy exports are sold almost exclusively to the U.S. at depressed prices for lack of a coastal facility. It also helps reaffirm Canada’s investment climate, battered by the bungled Trans Mountain oil pipeline expansion that was sold by Kinder Morgan Inc. to the government for C$4.5 billion before its approval was quashed by a federal court.

Source: thestar.com

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