Asian Firms to Partner in Canadian LNG Project
Canadian subsidiary of global energy giant Royal Dutch Shell, is in exclusive talks with the Asian firms to partner in building a liquefied natural gas export facility in British Columbia.
The consortium, reportedly including China National Petroleum Co., Korea Gas Corp. and Mitsubishi Corp. is looking at building a liquefied natural gas export facility in British Columbia to open international markets for western Canadian gas.
"In terms of LNG specifically, it is an area where we continue to invest globally and it's an area where we have a leadership position, globally, and we'd like to continue to invest in that as demand grows," said Shell spokesman Larry Lalonde.
Lalonde wouldn't offer a cost or timeline for project development because that's dependent on selecting a location, which the firms have yet to do, he said, dismissing recent reports the company had settled on Prince Rupert, B.C.
"Together we are exploring opportunities, but we're so early in the overall scope of what we may or may not be looking at that there are several things that would have to be solidified upon moving forward," Lalonde said.
The proposed B.C. LNG facility arose from global relationships Shell has formed with each company, which has meant other projects around the world, Lalonde said.
For example, Mitsubishi and Shell announced in May they would build the world's first floating LNG facility off Australia, an idea among those the firms are considering for British Columbia, Lalonde confirmed.
Shell is competing for first mover status on B.C. LNG export with Kitimat LNG, a proposed project for B.C.'s northwest by Apache Corp., EOG Resources Ltd. and Encana Corp. that is working through regulatory reviews, before a final investment decision later this year.
Calgary oil and gas producer Progress Energy Resources Corp. also announced in May its $1.07-billion partnership with Malaysian state-owned oil company Petronas to develop the Alberta firm's shale gas assets and look at the feasibility of a B.C. west coast LNG export facility Petronas would operate.
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