LNG Boom Spreads North
Shell decided Oct. 1 to go forward with partners to build a $31-billion liquefied natural gas export terminal in Kitimat, British Columbia. Construction activities will begin later this year at the site, which will move Canadian natural gas to Asia. Joint partners Fluor and JGC will perform engineering, procurement, fabrication and construction for the facility, which will include two liquefied natural gas trains, each with a nominal capacity of 5.5 million tons per year. The terminal will be constructed under a single-lump EPC contract. First production is expected in the mid-2020s. The Kitimat terminal is the only project of four approved in Canada that is under construction. Five other terminals are under construction in the U.S., and another four in the U.S. have been approved but are not yet under construction. Shell, with a 40% stake in the Canadian terminal, says the cost to deliver LNG into Asia is expected to be “structurally advantaged compared to a greenfield development on the U.S. Gulf Coast.” Petronas will own 25% of the terminal; PetroChina, 15%; Mitsubishi, 15 %; and Kogas, 5%.