LNG Canada under Environmental Review

LNG Canada, a project led by Royal Dutch Shell, has formally entered the environmental assessment review stage. Environmental Assessment Office of the British Columbia accepted an Application from LNG Canada Development Inc. for an environmental assessment certificate for the proposed terminal in Kitimat, B.C last week. The proposed project consists of the construction and operation of a liquefied natural gas (LNG) plant and associated marine terminal facilities for the export of LNG to Asian markets. The EAO’s acceptance of LNG Canada’s Application marks the
culmination of more than three years of environmental studies, design work and engagement with local communities and Aboriginal Groups and is subject to 180-day review. LNG Canada said that it has selected natural gas turbines for the liquefaction process to minimize fuel use and greenhouse gas emissions. It has also signed a power agreement with BC Hydro to use clean, renewable electricity from BC Hydro for the electricity needed for the facility. LNG Canada estimates the proposed facility will have a greenhouse gas emission intensity of about 0.15 tonne CO2e/tonne LNG produced, which is lower than benchmarks recently introduced by the B.C. Government.

The project’s estimated cost is expected to range between USD 25 and 40 billion, not including a gas pipeline, according to LNG Canada. The project is 50 pct-owned by Royal Dutch Shell, through Shell Canada Energy, 20 pct is owned by PetroChina Co. Ltd., followed by 15 pct each owned by Japan’s Mitsubishi Corp. and South Korea’s Korea Gas Corp.