Shell to invest in LNG Canada

Shell Canada Energy, an affiliate of Royal Dutch Shell plc (Shell), recently announced it has taken a final investment decision (FID) on LNG Canada, a major liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada, in which Shell has a 40% working interest. With LNG Canada’s joint venture participants also having taken FID, construction will start immediately, with the first LNG expected before the middle of the next decade.

Shell’s 40% share of the project’s capital cost is within the company’s current overall capital investment guidance of USD 25-30bn per year.

LNG Canada is a long life asset that will initially export LNG from two processing units, or “trainsâ€?, totalling 14 million tonnes per annum, with the potential to expand to four trains in the future. It is advantaged by access to abundant, low-cost natural gas from British Columbia’s vast resources and the relatively short shipping distance to North Asia, which is about 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal. The LNG export facility will be constructed using proven industry technology on a large, partially developed industrial site with an existing deep-water port, roads, rail and power supplies.

The project was planned and designed by working closely with local communities, First Nations and governments to ensure sustainable development was considered in every aspect of the project. For example, the project has been designed to achieve the lowest carbon intensity of any LNG project, aided by the partial use of hydropower.

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