THE FIRST LNG CANADA

EIA - On October 1, 2018, LNG Canada became the first among the proposed liquefied natural gas (LNG) export projects in Canada to reach Final Investment Decision (FID) and the first large-scale greenfield liquefaction facility to be built on the west coast of the North American continent.

LNG Canada will have two liquefaction units, called trains, with a combined capacity of 14 million metric tons per annum (1.8 billion cubic feet per day (Bcf/d)), expandable to four trains. The facility will be located in Kitimat, on the Pacific coast of British Columbia in western Canada, and will be supplied by natural gas from the Montney formation, which straddles British Columbia and Alberta, via a proposed 2.1 Bcf/d, 420 mile-long Coastal GasLink pipeline to be built by TransCanada.

The project is a joint venture between Royal Dutch Shell (which holds a 40% stake in the project), Petronas (25%), Mitsubishi (15%), PetroChina (15%), and Korea Gas (5%). This project made an FID without first securing long-term Sales and Purchase Agreements (SPAs) with LNG buyers, which are typically required by financial institutions to fund large-scale liquefaction facilities. Instead, project developers will arrange their own financing, and each of the project partners will be responsible for providing natural gas supply for liquefaction and marketing its own share of off-take LNG volumes.

Growing natural gas production in western Canada from abundant shale and tight natural gas resources, as well as declining pipeline exports to the United States since 2010, have prompted Canadian producers to seek new markets for natural gas. More than 30 LNG export projects have been proposed, primarily in western Canada. To date, Canada's National Energy Board (NEB) has authorized 18 LNG export projects. Of these projects, 13 are authorized in British Columbia on the west coast and 5 in Nova Scotia and Quebec on the east coast, with a combined export capacity of 36.6 Bcf/d. The duration of export licenses issued by NEB for these projects ranges from 20 years to 40 years.

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Earlier: 

2018, October, 3, 08:20:00 SHELL LNG INVESTMENT: $30 BLN SHELL - Shell Canada Energy, an affiliate of Royal Dutch Shell plc (“Shell”), today announced it has taken a final investment decision (FID) on LNG Canada, a major liquified natural gas (LNG) project in Kitimat, British Columbia, Canada, in which Shell has a 40% working interest. With LNG Canada’s joint venture participants also having taken FID, construction will start immediately with first LNG expected before the middle of the next decade. Shell’s 40% share of the project’s capital cost is within the company’s current overall capital investment guidance of US$25-$30 billion per year.

2018, June, 1, 09:00:00 PETRONAS BUYS LNG CANADA REUTERS - Malaysia’s state-owned oil and gas company Petroliam Nasional Bhd [PETR.UL] said on Thursday it is buying a 25 percent stake in a Canadian liquefied natural gas (LNG) export project, nearly a year after cancelling its own planned terminal.

2016, April, 27, 20:35:00 CANADA'S GAS PRODUCTION WILL UP Canada's National Energy Board (NEB) projects that both Canada's natural gas production and its domestic natural gas consumption will increase through the next decade. Exports of natural gas by pipeline to the United States are expected to continue to decline. The planned construction of liquefied natural gas (LNG) export terminals on Canada's western coast, which would send LNG exports to Asian markets by 2019, plays a key role in maintaining Canada's overall natural gas exports.

2015, May, 4, 12:00:00 CANADA'S LNG PROGECTS Large quantities of shale gas, tight gas and coalbed methane are being discovered and extracted in the vast Western Canadian Sedimentary Basin (WCSB), which covers southwestern Manitoba, southern Saskatchewan, Alberta (AB), northeastern British Columbia (BC) and the southwest corner of the Northwest Territories.

2014, November, 9, 13:30:00 SHELL & CANADA LNG: $35 BLN A liquefied natural gas export plant proposed for Canada’s Pacific coast and backed by Royal Dutch Shell PLC could cost up to 40 billion Canadian dollars ($35.3 billion), according to a regulatory filing with the British Columbia government.

2014, October, 2, 20:05:00 LNG AT RISK Liquefied natural gas projects in Africa, Canada and Australia face delays or even cancellation as global demand growth slows and U.S. output increases, according to Goldman Sachs Corp.

2014, June, 9, 21:10:00 CANADA'S LNG: LIQUID SOLUTION Canada’s LNG exporters forced to seek a liquid solution