Huge LNG Project in BC Given Final Approval by Shareholders

October 3, 2018 Updated: October 3, 2018

VANCOUVER—Investors have given final approval for a massive liquefied natural gas project in northern British Columbia.

The five partners have agreed to the $40-billion joint venture that includes a gas liquefaction plant in Kitimat on B.C.’s coast and a 670-kilometre pipeline delivering natural gas from the northeast corner of the province.

The partners—Royal Dutch Shell, Mitsubishi Corp., the Malaysian-owned Petronas, PetroChina Co. and Korean Gas Corp.—delayed the final investment decision in 2016, citing a drop in natural gas prices.

But with this week’s final investment decision, the first liquefied natural gas is now expected before the middle of the next decade.

TransCanada Corp. announced separately on Oct. 2 that it will proceed with construction of the Coastal GasLink pipeline project to the LNG Canada plant from the Montney gas-producing region near Dawson Creek, B.C.

LNG Canada CEO Andy Calitz says the project received support from the B.C. government, local First Nations, and the Kitimat community.

“This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous interests,” he said in a news release.

B.C. Premier John Horgan said the project “symbolizes the kind of balanced and sustainable path forward British Columbians are looking for.”

“We welcome the unprecedented commitment shown by the LNG Canada partners to work within our province’s ambitious climate goals,” he said in a statement. “The critical importance of this project is what it represents—the intersecting of economic development, jobs for local workers, partnerships with Indigenous communities, and forward-looking climate leadership.”

But provincial Green party Leader Andrew Weaver called the announcement a “profound disappointment.”

“B.C. taxpayers will subsidize its power by paying rates twice as high and taking on the enormous public debt required to build Site C. There may be as little as 100 permanent jobs at LNG Canada. I believe we can create far more jobs in other industries that won’t drastically increase our emissions,” he said in a statement.

Horgan’s minority NDP government only governs because of the support of the Green party.

Weaver noted the NDP were outspoken critics of the project when they were in Opposition under the Liberals.

“Our caucus was shocked when they turned around and delivered an even larger giveaway once in power,” he said. “We did everything we could to deter them from making this decision, but we are only three MLAs up against the 84 whose parties support the heavy subsidization of this industry.”

From The Canadian Press