Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



LNG Canada committed to starting construction on project in 2018

VANCOUVER,  (Reuters) - The chief executive of the LNG Canada project on British Columbia's northern coast said  that the company was committed to starting construction on the C$40 billion ($31.1 billion) liquefied natural gas export project this year.

An investment decision on the terminal was delayed in 2016, due to sagging oil prices that hit cash flows, along with an unfavorable supply-demand outlook, but remains on track for 2018, Andy Calitz said at an LNG conference on Tuesday.

"It didn't make sense in July 2016," he said. "When (our stakeholders) asked the inevitable question, when will you reconsider the FID? Our answer was: We will be in construction in 2018. I reaffirm that commitment today."

Calitz later told reporters that a trade spat over imported fabricated industrial steel components (FISC) was no longer an issue for the project and would not have any impact on an investment decision by the joint venture partners.

LNG Canada had asked Canada's Finance Ministry to exempt it from the 45.8 percent anti-dumping tariffs, which apply to certain FISC components imported from Spain, South Korea and China. LNG trains, most of which are built in Asia, are FISC components.

Calitz did not make clear why the FISC duties were no longer an issue, but said the modules have been contracted and the company has more clarity on the parameters and legal application of the tariffs.

LNG Canada is a joint venture between Royal Dutch Shell Plc , PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.

($1 = 1.2871 Canadian dollars) (Reporting by Julie Gordon in Vancouver; Editing by Richard Chang and James Dalgleish)


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
China is hosting the 19th International Conference and Exhibition on Liquefied Natural Gas (LNG2019) in Shanghai from 1–5 April—an appropriate choice of host country, given China’s increased appetite for natural gas.
EWAnalysis: Canada comes late to LNG; projects and prospects mixed
- Energy Web Atlas
Canada has abundant natural gas resources.
Executive Viewpoint: BHGE developing technology-driven solutions to reduce total cost of ownership
-Alberto Matucci
While BHGE recently won new orders for LNG projects, the company remains committed to differentiating the business, implementing solutions proven in LNG into other applications of the oil and gas value chain.
Industry Trends: Russia and US go head-to-head over EU gas market
-Eugene Gerden
Lower-cost Russian gas will likely continue to dominate the EU market in the coming years, despite the growth in oil prices, to which Russian gas prices are linked.


A New Approach to Large Medium Voltage Drives

Register Now

By attending this webinar, you will learn the benefits of using a single-channel, Variable Frequency Drive (VFD) solution for applications above 9,000Hp with operating voltages from 11kV to 13.8kV. We will explore a VFD solution that does not require a step-up output transformer but still provides maximum control, environmental and motor flexibility to the end user. We will also discuss how to provide maximum reliability using power cell redundancy and the removal of water cooled components. The topics covered in the webinar include:
•A brief review of the multi-cell M2C topology
•A review of the physical implementation and the advantages it offers to the end user
•A presentation of the various implementations and ratings available for use on typical pump, compressor and fan applications.

May 7, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.