The five primary investors granted their approval late Monday for the development of a proposed liquefied natural gas project in northern B.C.
The $40-billion LNG Canada project calls for the construction of a pipeline to transport natural gas from Dawson Creek in northeastern B.C. to a yet-to-be-built processing terminal on the coast in Kitimat, where the gas would be liquefied for overseas export.
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.
A rendering of the proposed liquefied natural gas project in northern B.C. shows the processing terminal in Kitimat. All five primary investors have signed off on the project. (LNG Canada/Flickr)
Prime Minister Justin Trudeau and B.C. Premier John Horgan have called a news conference for Tuesday at 8:30 a.m. PT in Vancouver to officially give the final investment their approval.
“Today’s decision by LNG Canada to invest in northern B.C. demonstrates that balancing our economic, environmental and reconciliation priorities is possible,” Horgan said in a statement. “It’s a balance that will benefit the people of B.C. as we build a cleaner economy.”
Cranes work in the water at the Kitimat LNG site near Kitimat, in northwestern British Columbia, on April 13, 2014. (Julie Gordon/Reuters)
The B.C. ministries of Finance and Energy have estimated the project would generate $22 billion in direct government revenue over the next 40 years.
The project is also expected to employ as many as 10,000 people in its construction and up to 950 in full-time jobs.
Energy Minister Michelle Mungall called it “an unprecedented level of investment” in B.C.
Environmental factors
To help make the project happen, Horgan’s government offered a break on the carbon tax as well as an exemption on provincial sales tax related to construction costs.
According to information provided by the province, LNG Canada would be the least greenhouse gas-intensive large LNG facility in the world.
However, B.C. Green Party Leader Andrew Weaver was skeptical the project would mesh with the province’s goal of lowering greenhouse gas emissions to 40 per cent below 2007 levels by 2030.
In a statement, he called the announcement a “profound disappointment,” saying his party would not support the LNG legislation that would be required.
We’ve agreement 4 BCNDP 2 develop plan 2 reduce emissions 40% by 2030 in CASA. Plan hasn’t been announced. If plan isn’t realistic, then CASA agreement will have been violated. Also, @BCGrens will not support required LNG legislation. Will <a href=”https://twitter.com/bcliberals?ref_src=twsrc%5Etfw”>@bcliberals</a>? that is question <a href=”https://twitter.com/hashtag/bcpoli?src=hash&ref_src=twsrc%5Etfw”>#bcpoli</a> <a href=”https://t.co/ISyvdTtOey”>https://t.co/ISyvdTtOey</a>
—@AJWVictoriaBC
With files from The Canadian Press
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