Investors approve $40 billion LNG export facilty for Kitimat, B.C

Investors approve $40 billion LNG export facilty for Kitimat, B.C

LNG Canada announced late Monday night that its joint venture participants – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS –have taken a Final Investment Decision to build the LNG Canada export facility in Kitimat, B.C. in the traditional territory of the Haisla Nation.

“The Final Investment Decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects,” said Andy Calitz, CEO of LNG Canada.

The $40 billion will project will see the construction of a 640-kilometre pipeline to transport natural gas from Dawson Creek in northeastern B.C. to a brand new processing terminal on the coast in Kitimat, where the gas would be processed into liquid for export to overseas.

The province says the project is expected to generate about $23 billion in public revenue over 40 years  and create up to 10,000 jobs during construction and up to 950 permanent jobs once operations are underway.

The NDP government has promised a break on the carbon tax and an exemption on provincial sales tax related to construction costs at the proposed liquefied natural gas export terminal.

“The project LNG Canada is bringing to northern B.C. symbolizes the kind of balanced and sustainable path forward British Columbians are looking for,” said B.C. Premier John Horgan.

“We welcome the unprecedented commitment shown by the LNG Canada partners to work within our province’s ambitious climate goals.”

Premier Horgan will be joined by Prime Minister Justin Trudeau,  Haisla Chief Councillor Crystal Smith,  Kitimat Mayor Phil Germuth,   LNG Canada CEO Andy Calitz and Shell’s Maarten Westelaar for a signing ceremony in Vancouver on Tuesday morning.

There is widespread support from Canada’s energy sector for the project.

The LNG industry has struggled to take off in British Columbia, but is booming in the United States, where billions of dollars are being pumped into natural gas pipelines and LNG facilities.

Canadian producers say a positive final investment decision for the Kitimat-based LNG Canada project could eventually encourage others to follow suit, creating the demand needed to soak up Western Canada’s glut of natural gas.

B.C. Green Party Leader Andrew Weaver pledged in January to bring down the NDP government if Premier John Horgan pursues the development of the province’s LNG industry. A spokesperson for the party said at the time Weaver is concerned about keeping the province within emissions targets.

Since then, Weaver has said he won’t move a vote of non-confidence against the government on the matter but says the Greens would not support, “required LNG legislation.”

“I am deeply disappointed that the NDP minority government’s tax giveaway has resulted in the country’s single biggest source of emissions receiving an FID,” said Weaver on Monday night

“Our Caucus has been clear that we do not support the government’s LNG regime. The government does not have our votes to implement this regime and will have to work with the B.C. Liberal MLAs if they want this project to go forward.”


With files from CBC 

Ben O'HaraBen O'Hara

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