SHELL, PARTNERS IN C$40B GAS PROJECT
LNG Canada, in which Petronas has 25pc stake, to shorten delivery time to Asia
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 — which comprises Shell, Malaysia’s Petroliam Nasional Bhd (Petronas), Mitsubishi Corp, PetroChina Co and Korea Gas Corp (Kogas) — was set to announce a final investment decision on the C$40 billion (RM129.2 billion) project, said sources.
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 United States Gulf.
LNG Canada promises better prices for the country, whose energy exports are sold almost exclusively to the US at depressed prices for lack of a coastal facility.
LNG Canada proposes to eventually export as much as 26 million tonnes per year. The investment approval is only for an initial two LNG trains of 13 million tonnes per year.
Shell holds 40 per cent of LNG Canada, with Petronas at 25 per cent, 15 per cent each for PetroChina and Mitsubishi, and Kogas with five per cent.