IN JANUARY, SHELL CANADA’S joint LNG venture earned B.C.’s first-ever permit to build an LNG export plant in the province. The consortium aims to take a final investment decision on the LNG Canada project in 2016.
The group aims to build the 13-million-metric-ton-per-year facility in Kitimat, B.C., which could cost up to $40 billion. The project gained environmental approval from federal and provincial authorities last June. The latest permit assesses design and safety, and imposes 30 conditions, including noise management and emergency response plans.
Shell and its partners already have upstream E&P assets in the Alberta and B.C. Horn River, Montney and Duvernay formations, which could provide feedstock to the export plant. Shell’s Groundbirch project in the Montney produces over 410 million cubic feet of raw gas per day, and Shell’s partners also have upstream assets: Korea’s KOGAS is investing $565 million in Horn River and the Montney, Japan’s Mitsubishi is investing $2.9 billion in the Montney and PetroChina is investing $2.18 billion in the Duvernay.