For the third time in three days, there is significant movement on a major Canadian LNG project. We’ve already seen China leap into bed with Prince Rupert LNG with planned capacity of 29 million tonnes per annum (MPTA) and Pacific North West LNG with initial 12 mpta capacity moving to 18mpta. Today we’ve got formal JV agreement at Canada LNG:
Shell Canada Energy, PetroChina Corporation, Korea Gas Corporation (KOGAS) and Mitsubishi Corporation have announced, in the presence of Christy Clark, Premier of British Columbia and Rich Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier, the signing of a joint venture agreement to develop an LNG export project – LNG Canada.
The new operating entity, LNG Canada Development Inc., is incorporated and registered under the federal laws of Canada. The proposed project, to be located in Kitimat, British Columbia, is subject to regulatory approvals and a Final Investment Decision by the joint venture.
This has the same capacity plan as that of PNW so together these three projects alone represent 65mpta capacity, almost as much as the US has approved. While there’s a way to go and much would come on stream post 2020, I don’t see any activity of this nature surrounding Australia’s so-called second leg of LNG projects.
