LNG project in B.C. gets green light

Final approval for a massive liquefied natural gas project in northern British Columbia shows that major resource projects can be built in the province, the CEO of LNG Canada said Tuesday.

The future of major energy projects in British Columbia has been at the centre of a debate because of the provincial NDP government’s opposition to the Trans Mountain pipeline. But Andy Calitz said the LNG plant that’s planned for Kitimat on B.C.’s coast and a 670-kilometre pipeline delivering natural gas from the northeast corner of the province shows the way forward.

“It validates the reality that in B.C. projects can be done if it is done in the right way when it comes to resource development through a process of building relationship before we build the project,” he said.

“LNG Canada proves today that British Columbia, the beautiful province of British Columbia, and Canada can monetize our significant, lowcost natural gas resources, that we can access new markets in Asia, that B.C. and Canada can attract foreign investment, that B.C. and Canada can deliver competitive energy projects and take a place on the global map of energy exporting countries.”

Prime Minister Justin Trudeau said the project is an example of his often repeated position that exporting Canada’s energy resources is possible while also protecting the environment.

“We can’t build energy projects like we did in the old days, where the environment and the economy were seen as opposing forces,” said Trudeau.

“In the 21st century, we don’t have to choose between a healthy environment and a strong economy. They must go together.”

The five partners in the LNG project have agreed to a $40billion joint venture. Trudeau said the amount being spent is the largest single investment by the private sector in Canadian history. The partners — Royal Dutch Shell, Mitsubishi Corp., the Malaysian-owned Petronas, PetroChina Co. and Korean Gas Corp. — delayed the final investment decision in 2016, citing a drop in natural gas prices.

Each company will be responsible to provide its own natural gas supply and will individually market its share of liquefied natural gas.

The first liquefied natural gas is expected to be shipped before the middle of the next decade.

Calitz said the project received support from the B.C. government, local First Nations and the Kitimat community — and LNG Canada is ready to proceed with construction.

B.C. Premier John Horgan said the project will help a region of the province that needs jobs.