Premier Christy Clark

Big LNG investors endorse B.C. plan

Shell, PetroChina, Korea Gas and Mitsubishi still up to two years from final commitment to Kitimat-based project

The biggest players in B.C.’s liquefied natural gas export proposal are still more than a year away from final commitment, but their latest step forward is a vote of confidence, according to the CEO of LNG Canada.

Representatives of Shell Canada, Korea Gas, Mitsubishi and PetroChina announced signing of a joint venture agreement for the LNG Canada project in Vancouver Wednesday, with Premier Christy Clark and Natural Gas Minister Rich Coleman on hand.

LNG Canada CEO Andy Calitz cautioned that a final investment decision depends on completion of reviews by B.C.’s Environmental Assessment Office and Oil and Gas Commission. The companies will now begin engineering work, and those steps will take another 18 to 24 months, Calitz said.

The partnership includes an increase in Shell’s stake to 50%, with PetroChina retaining 20% and Mitsubishi and Korea Gas reducing their shares from 20% to 15. Calitz said the companies have other projects in development in Africa, Australia, Russia and elsewhere, and the change does not reflect any loss of confidence in B.C.

Calitz acknowledged the B.C. government’s commitment to increase industrial skills training in the school and apprenticeship system, announced Tuesday.

Clark also announced she is leaving Friday for her fifth trade mission to Asia, with stops in Malaysia, Singapore and Hong Kong, mainly to promote LNG development.

Calitz said there are international factors affecting the export price, but LNG Canada is looking beyond Asia to other world markets.

There are three key factors in deciding whether to commit to the Kitimat project, Calitz said. They are shifts in the gas price in Asia, the supply and cost of labour to build the plant and pipelines, and construction of gas pipelines through the Rocky Mountains.

The companies have an agreement with TransCanada to build a pipeline, and gas production underway in the Horn River, Montney, Cordova and Liard shale formations in northeastern B.C.

 

Just Posted

Kelowna woman only Canadian to train in Danish sailing program

A Kelowna sailor compares her life at sea to manning an old… Continue reading

Okanagan Sun juggle coaching staff

Kelowna football club makes a move within its coaching ranks

Kelowna West Libertarian goes after ICBC

Kyle Geronazzo feels B.C. drivers are being “ripped off” by the provincial auto insurer

Kelowna finalists announced for small business awards

The 15th annual Small Business BC Awards will be held Feb. 23

Former councillor announces mayoral bid in West Kelowna

Gord Milson says he’s running for mayor in next October’s civic election

What’s happening

Find out about events happening in your community this weekend

Ice-cream-eating bear draws controversy

An Alberta Wildlife Park posted a video this week of one of their bears going through a Dairy Queen drive-through

Fernie, RCMP go to court over city log books in fatal ammonia leak probe

Log books center stage in clashing of investigations between the city and RCMP

B.C.’s biggest pot plant planned for Oliver

Co-founder Tony Holler said the 700,000 sq. ft. facility would produce 100,000 kg of pot per year

High-end whisky seized in B.C. bar raids

Raids end in seizures at Victoria, Nanaimo and Vancouver whisky joints

Letter: Let’s vote for a return to democracy in November.

Letter writer says a coming referendum vote could change the way political power is distributed

Train derails in Northwest B.C.

CN reports no injuries or dangerous goods involved after coal train derailment.

King’s thrilling tale brought to the Vernon stage

Arts Club Theatre Company presents Misery at the Vernon and District Performing Arts Centre Jan. 30

Double-doubles and demonstrations: Employees rally outside Tim Hortons

Protests held in response to Ontario franchise owners cutting employee benefits and breaks

Most Read