LNG Canada jointly develop liquefied natural gas export facility

LNG Canada, a joint venture between Mitsubishi, Shell Canada, Korea Gas and PetroChina, is planning to build a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada.

The proposed facility will constitute a gas liquefaction plant and storage facilities, as well as marine off-loading facilities for exporting and shipping LNG.

The LNG plant will initially have two LNG processing units, each with a capacity to produce LNG amounts of six million tpa, with an option to expand the project in the future.

Jose-Alberto Lima, Shell Energy Resources vice president, said: "Our combined expertise, and our focus on technological innovation in delivering safe and environmentally sound LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and increase access to new export markets for Canada."

Development work on the project is set to begin after preliminary engineering work, environmental assessments and consultations with local communities and other stakeholders.

Shell will hold a 40% working interest in the LNG Canada project, while Korea Gas, Mitsubishi and PetroChina will hold 20% each.

Bo Qiliang, PetroChina vice president, said: "This project will contribute to a further strengthening of trade relationships between China and Canada and will help China use clean burning natural gas to fuel its economic growth."

The LNG Canada project is expected to start at the end of 2012.