LNG Canada announces positive final investment decision

LNG Canada announces positive final investment decision

LNG Canada announces positive final investment decision

"Trade barriers won't be an impediment to moving forward on this project", Trudeau told a news conference in Vancouver Tuesday following the announcement that Shell and its four partners were moving ahead with LNG Canada, the country's largest private sector investment ever.

Other partners in the project include Royal Dutch Shell plc via affiliate Shell Canada Energy (40%); PetroChina Co Ltd via subsidiary PetroChina Canada Ltd (15%); Mitsubishi Corp via subsidiary Diamond LNG Canada Ltd (15%); and Korea Gas Corp, via wholly-owned subsidiary Kogas Canada LNG Ltd (5%). "It seems that mega-projects are back".

TransCanada Corporation will build, own and operate the 670 km Coastal GasLink (CGL) pipeline that will connect natural gas from northeastern British Columbia to the export plant in Kitimat.

NDP support for the pipeline could divide the ruling NDP and the B.C. Greens, whose support Horgan needs to maintain government.

"Adding such a massive new source of GhGs means that the rest of our economy will have to make even more sacrifices to meet our climate targets", Weaver said in a release.

The officials said B.C.'s proposed climate plan will be created to meet legislated targets to cut greenhouse gas emissions by 40 per cent by 2030, 60 per cent by 2040 and 80 per cent by 2050.

"Getting an LNG project to a final investment decision is like a moon landing", said Maarten Wetselaar, Shell's integrated gas and new energies director, in Vancouver.

"This is the first LNG project in Canada and the project will pave the way for us to add value to our world-class gas resources in the North Montney area and strengthen our supply portfolio for LNG to the Asian markets", Petronas chief executive Wan Zulkiflee Wan Ariffin said on Tuesday.

Oil holds near four-year highs, with $100 looking more likely
Crude has rallied about 16 percent since mid-August as supply losses from Iran to Venezuela continued to rattle global markets. Benchmark West Texas Intermediate, or WTI, crude futures rose to the upper 75-dollar per-barrel range on Monday.

"Today, a few dreams are realized", Andy Calitz, the CEO of LNG Canada, said as he announced the company's decision.

LNG Canada will receive PST exemption during construction, get a break in paying industrial electricity rates instead of LNG rates from BC Hydro, and the province repealed the LNG-specific income tax introduced by the previous Liberal government.

Foreign direct investment has slumped since early 2016, according to Statistics Canada, settling around $11.6 billion between April and June 2018, compared with $35 billion three years earlier.

The project will move LNG to Asia faster than from the U.S. Gulf Coast.

Business interests have placed increasing pressure on Finance Minister Bill Morneau and other officials to improve Canadian competitiveness, through tax cuts, regulatory changes and other measures, arguing that Canada is gradually losing its advantage over US firms.

"It's fantastic on the gas side, but it does nothing for oil transportation infrastructure which is where there is this critical gap in Canada", Perrault said. "It's a good day for Canadian workers. about 10,000 of them, in fact", Trudeau said.

However, the development of the shale gas reserves has been shelved after the collapse of fuel prices worldwide on top of the large capital required. LNG Canada has challenged the duties in court, arguing no Canadian assembly yard has the experience nor the water access to ship them to site in Kitimat on Canada's northwest coast. And the power supply agreements - B.C. Hydro will supply some clean power to the project - are up and running.

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