Premier Christy Clark

Big LNG investors endorse B.C. plan

Shell, PetroChina, Korea Gas and Mitsubishi still up to two years from final commitment to Kitimat-based project

The biggest players in B.C.’s liquefied natural gas export proposal are still more than a year away from final commitment, but their latest step forward is a vote of confidence, according to the CEO of LNG Canada.

Representatives of Shell Canada, Korea Gas, Mitsubishi and PetroChina announced signing of a joint venture agreement for the LNG Canada project in Vancouver Wednesday, with Premier Christy Clark and Natural Gas Minister Rich Coleman on hand.

LNG Canada CEO Andy Calitz cautioned that a final investment decision depends on completion of reviews by B.C.’s Environmental Assessment Office and Oil and Gas Commission. The companies will now begin engineering work, and those steps will take another 18 to 24 months, Calitz said.

The partnership includes an increase in Shell’s stake to 50%, with PetroChina retaining 20% and Mitsubishi and Korea Gas reducing their shares from 20% to 15. Calitz said the companies have other projects in development in Africa, Australia, Russia and elsewhere, and the change does not reflect any loss of confidence in B.C.

Calitz acknowledged the B.C. government’s commitment to increase industrial skills training in the school and apprenticeship system, announced Tuesday.

Clark also announced she is leaving Friday for her fifth trade mission to Asia, with stops in Malaysia, Singapore and Hong Kong, mainly to promote LNG development.

Calitz said there are international factors affecting the export price, but LNG Canada is looking beyond Asia to other world markets.

There are three key factors in deciding whether to commit to the Kitimat project, Calitz said. They are shifts in the gas price in Asia, the supply and cost of labour to build the plant and pipelines, and construction of gas pipelines through the Rocky Mountains.

The companies have an agreement with TransCanada to build a pipeline, and gas production underway in the Horn River, Montney, Cordova and Liard shale formations in northeastern B.C.

 

Just Posted

Passenger count down, fuel sales up at Trail Regional Airport

Heavy snowfall into the spring and ongoing wild fires in 2018 impacted landings at the Trail airport

Vehicles we drive today, better in almost every way

Nutini: The modern day automobile is a marvel of engineering and technology

Trail area homicide investigation continues

Jan. 14 marked one year since Jordan Workman was discovered in the trunk of a burnt car

Outbreak prompts advisory for visitors to extended care wing in Trail hospital

A respiratory infection has been active in Poplar Ridge Pavilion since Monday, advises IH

RDCK moves ahead with Castlegar rec complex upgrade plan

Board approves grant application for $13 million from provincial, federal governments

Fashion Fridays: Inspirational gym outfits

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Missing B.C. boy and aunt found safe

The pair had been reported missing from Kamloops

Company issues lifetime ban after man jumps from cruise ship

Nick Naydev posted the video last week showing him standing on the balcony of the Symphony of the Seas

Unruly passenger forces B.C.-bound flight to divert to Calgary

Police say charges are pending against a woman in her 40s

Inflation rises as higher airfares, veggie prices offset cheaper gas

Statistics Canada says inflation accelerated to two per cent in December

Social media strains over Prince Rupert’s boil water notice

Resident forms Community for Clean Water, and Jennifer Rice responds to acting mayor’s comments

Dog dies saving B.C. family from burning home

Homeowners safe but one pet missing, another confirmed dead following fire

Russian fighter jets collide over Sea of Japan crews eject

One plane crashed after its crew ejected safely, the other crew also ejected but they have not been found

Judge to deliver verdict in British sailor’s gang rape case

The alleged gang rape took place at a Halifax-area military base in 2015

Most Read