Shell Canada Energy has taken final investment decision (FID) for the expansion of the LNG Canada site in Kitimat, British Columbia. The expansion comes after Shell’s annual report predicted a rise of around 65% in global LNG demand by 2040.
Phase two of the expansion project will add two LNG processing units – increasing LNG Canada’s total production company from 14 million tonnes per year to 28 million tonnes per year. This infrastructure will be supported with the addition of another LNG storage tank, condensate tank, loading berth, and expanded utility and process systems.
LNG Canada is a joint venture between Shell (40%); PETRONAS (25%); PetroChina Company Limited (15%); Mitsubishi Corporation (15%); and Korea Gas Corporation (5%), with the facility operated by LNG Canada Development.
Cederic Cremers, Shell’s integrated gas president, says: ‘LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important. Phase 2 supports Shell’s strategic objective to be the world’s leading integrated gas and LNG business by connecting Canadian resources with Shell’s global LNG portfolio, trading capability and customer reach.’
