Shell-led LNG Canada construction has 60% advance
The LNG Canada consortium led by Shell has completed over 60% of the construction of an LNG processing plant and an export terminal that at a $31-B estimated cost is Canada´s biggest private investment in history.
“The project continues to advance with the delivery of 24 modules in the first quarter and an additional 16 modules so far in Q2,” said David Constable, chairman and CEO at Fluor Corp. on May 6, during the first quarter 2022 earnings call, according to a Motley Fool transcript.
“Now 60% complete, the LNG Canada project remains on track to deliver its first cargo by the middle of this decade,” the venture recently said in its website.
The published scheduled shipping for mid-June 2022 includes the arrival from China of the trestle pre-assembled racks that will be part of the terminal.
LNG Canada has a 40-year export license and the facility will produce 14 million tonnes per year of LNG for export. The final investment decision was announced in October 2018.
In other recent developments, LNG Canada announced in April the appointment of Jason Klein as its CEO. Klein´s past roles included being responsible for the Elba Island LNG project near Savannah, Georgia.
Project benefits
With some 5,000 Canadians currently employed at the site, “the cumulative value of its contracts and subcontracts to local, Indigenous and other businesses to date exceeds $3.6 billion, and includes $2.8 billion to Indigenous-owned and local area businesses,” LNG Canada said.
Shell, with about 40%, and Petronas, with 25% are the biggest stakeholders in LNG Canada. Both PetroChina and Mitsubishi have a 15% stake while Korea Gas owns 5%.
There will be an estimated $23 billion in new government revenues over the project´s life, according to the British Columbia government, which approved LNG Canada’s application for an export facility on December 2015.
Natural gas supply will come from northeast British Columbia. The Coastal GasLink pipeline will transport natural gas to the export facility in Kitimat.
The Western Canada project faced pandemic-related delays around 2020 that also resulted in increased costs, and led to talks between the project owner and its contractor.
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