A C$40 billion liquified natural gas (LNG) project in Canada has received final approval from Anglo-Dutch giant and its stakeholders on Tuesday, thereby marking the first major victory in Canada’s energy sector over the past couple of years.
The first shipment of super chilled fuel from Royal Dutch Shell led LNG Canada project is expected before 2025, targeting to meet the rising demand of Asian buyers, mainly China. Also, it has been stated that all the regulatory approvals required to start building both the terminal and the pipeline are well in place.
Under the leadership of Justin Trudeau, the energy sector has not witnessed many outright victories in the recent years. But the LNG Canada has marked the biggest win in the Canadian history outlining the largest private sector investment of C$40 billion.
Director, North America gas at Wood Mackenzie, Dulles Wang stated that it looks like that mega-projects are back. In the same email note, he added that LNG Canada gas export project is the biggest greenfield project to be approved globally after Russia’s Yamal LNG in 2013.
Prime Minister Justin Trudeau told that construction of LNG Canada will start immediately in the northern community of Kitimat, British Columbia. He further stated that the country cannot build energy projects like the earlier days where the environment and economy have been moving adversely. “They must go together.”
The project’s mega price of C$40 billion includes the export terminal, the related pipeline, pre-construction and site work, and the carrying costs. The construction of the pipeline which will carry natural gas from the Montney gas-producing region of British Columbia and Alberta to the LNG Canada facility is expected to begin in early 2019 by the pipeline operator TransCanada Corp.
With the development of this project, LNG will reach Asia faster, with approximately half the time it takes from the U.S. Gulf Coast stated LNG Canada. Under the transition phase where gas is being displaced by coal in Asia, the global LNG demand is expected to grow to double by 2035.
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