The LNG export terminal, which will convert and export 26mtpa of LNG, will be helped by a funding of around £208m from the federal government
Image: Rendering of LNG Canada’s LNG export terminal in Kitimat. Photo: courtesy of LNG Canada.
The Canadian government said that it will support LNG Canada’s CAD40bn (£30.35bn) liquefied natural gas export terminal (LNG export terminal) in Kitimat, British Columbia with an investment of CAD$275m (£208.64m).
The LNG export terminal, which is the largest single private sector investment in the history of Canada, will convert and export 26 million tonnes of LNG per year (mtpa), mainly to Asia.
According to Canada Minister of Finance Bill Morneau, the federal investment will include CAD$220m (£130.7m) funding to install highly energy-efficient gas turbines at the LNG project to minimise greenhouse gas emissions and also fuel use.
The additional $55m (£32.6m) funding from the government will be used for replacing Haisla Bridge in the Kitimat district to support and service existing and increased traffic in the region.
Both the investments are expected to help in advancing the LNG export terminal, said the Canadian government.
Morneau said: “The Government of Canada is proud to support this historic $40 billion project that will get our resources to new markets, diversify our trade, grow our economy and create middle-class jobs for Canadians, including First Nations and other communities in northern British Columbia. It’s a vote of confidence in Canada’s resource industry and is good news for Canadians right across the country.”
Status of the LNG export terminal in Kitmat
The LNG export terminal secured regulatory approvals in 2015 and in October 2018 broke ground with a target to begin operations in the middle of the next decade.
The project will initially feature two LNG processing units, with each having a production capacity of at least 6.5mtpa of LNG. It has been designed to accomodate four more units/trains in the future.
The LNG project will generate more than 10,000 jobs apart from yielding billions of dollars in direct government revenues and hundreds of millions of dollars in the form of construction contracts for indigenous businesses, said the Canadian government.
LNG Canada CEO Andy Calitz said: “The Government of Canada has enabled LNG Canada’s development of the lowest carbon content LNG for export in the world today. This secures thousands of high-paying jobs and billions in government revenues and demonstrates Canada is a place for major private sector investments.
“The Haisla Bridge is vital infrastructure linking the community of Kitimat to the sites and ports that will export LNG and aluminum to Asia. LNG Canada is pleased to have the Government of Canada step forward to support the community and the development of Canadian natural resource exports.”
LNG Canada is a joint venture owned by Shell Canada Energy (50%), and affiliates of PetroChina with 20% interest, Mitsubishi with 15% stake, and Korea Gas with 15% stake.