LNG Canada has announced that its Phase 2 expansion project will be moving forward.
Joint venture participants Shell, PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS took a final investment decision, paving the way for construction of two additional LNG processing units within LNG Canada’s existing Kitimat facility, as well as an additional LNG storage tank, condensate tank, loading berth, and expanded utility and process systems.
The expansion is projected to increase total production capacity from 14 to 28 million tonnes per annum, making it one of the largest such facilities in the world.
"LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose," LNG Canada President and CEO Chris Cooper said. "Phase 2 is about much more than tonnes. It will create thousands of jobs and further strengthen Canada’s role as a trusted energy partner, bringing more responsibly produced Canadian LNG to global markets while supporting long-term prosperity at home."
Energy Minister Tim Hodgson added that the move represents a "massive vote of confidence in Canada, and proof that not only does Canada have what the world wants – but we can get big projects built to deliver on that."
When construction peaks, an estimated 4,000 new jobs will be created in Kitimat, with an additional 2,100 jobs needed to build the new compressor stations along the Coastal Gas Link pipeline. Countless other skilled tradespeople will assist. When the project is completed, an additional 90 full-time roles and 150 contractor positions will be added to the existing 400-strong workforce in Kitimat.
According to Shell, which has a 40% stake in LNG Canada, commercial operationg will kick off "in the early 2030s."
"LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important," Shell Integrated Gas President Cederic Cremers said. "Phase 2 supports Shell’s strategic objective to be the world’s leading integrated gas and LNG business by connecting Canadian resources with Shell’s global LNG portfolio, trading capability and customer reach."
