Shell Forms Team to Explore Another LNG Facility in Kitimat
Tuesday, May 15, 2012 @ 11:46 AM
Kitimat, B.C.- Royal Dutch Shell has announced it is starting work on a proposed Liquefied Natural Gas export plant that would be situated near Kitimat.
Shell, along with its partners Korea Gas Corporation (KOGAS), Mitsubishi Corporation, and PetroChina Company Limited has announced the start of a formal consultation process with First Nations and local community residents regarding the project.
Shell holds a 40-percent working interest, with KOGAS, Mitsubishi and PetroChina each holding a 20-percent working interest. “Our combined expertise, and our focus on technological innovation in delivering safe and environmentally sound LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and increase access to new export markets for Canada,” says Jose-Alberto Lima, Shell’s Vice President LNG Americas, Shell Energy Resources Company.
A decision to move this project into development would be taken after conducting necessary engineering, environmental and stakeholder engagement work with start up around the end of the decade, pending regulatory approvals and investment decisions.
Minister of Jobs, Tourism and Innovation, Pat Bell says the start of the engineering work is critical “It sends a strong message that the intend to make this plant a reality”.
Although the total value of the project has not been disclosed, Minister Bell says typically, this kind of project would be in the $2 billion dollar range and would create several thousand jobs during the construction process which normally takes two or three years “Then the actual operation of the plant and the port capacity that comes with it employee several hundred people, so it it’s another big employment generator and boosts the economy.”
This would be the third LNG plant for the region with the Haisla First Nation developing a small one, the Apache Kitimat LNG and this would be the third.
The two current plans would rely on the Pacific Trails pipeline to deliver natural gas from the northeast of B.C. to the liquefaction plants. Bell says while the proposed Pacific Trails pipeline has the capacity to service the three proposed plants, “The first pipeline proposal that is on the table right now would have significant volume capacity, but there is a second pipeline proposal that is being discussed. We need to think if that line (Pacific Trails) will have sufficient capacity or if we will need to continue to ramp up and consider a second line.” Bell says there may be a case to support a second line to create some redundancy in the event the initial line ( if approved) runs into any issues that would hamper its ability to deliver the gas.
The proposed LNG Canada project would include the design, construction and operation of a gas liquefaction plant, and facilities for the storage and export of liquefied natural gas (LNG), including marine off-loading facilities and shipping.
LNG Canada will initially consist of two LNG processing units referred to as “trains”, each with the capacity to produce six million tonnes of LNG annually, with an option to expand the project in the future.
Comments
Why are we in such a rush to get our natural gas out of Canada ? Shell has had to resort to frackering the shale to get that last little bit of gas out of the ground and in the process ruining the ground water all over the place.
Got proof ground water has been ruined. Fracking has been going on for decades.
For the same reason that Alberta is in a rush to get the bitumen out.
It is there.
It is easy money.
Like the roads in this City someone will end up later on having to figure out what will happen when they run out.
Yes I do. I live in the Hudson’s Hope area where they started to do it about two years ago, with of course the statement that nothing will happen to our water. Well the water now smells like gas, is turbid at all times. Now have to haul water from a far away water well. Not just me, but the whole area has been affected like this. Yet had no issues over the past three generations on this land. Hear this time and time again from people affected but of course big oil says they do no harm even though they won’t tell you what chemicals and solids they inject into the well. It is a flawed process at the expense of the environment.
Only time will tell, but in my opinion, “fracking” will prove to be very harmful to the environment, in the long run. It is a short cut to increased profits for major corporations, a classic short term gain-long term pain scenario.
Sure, the practice has been around quite a while, but it is a process that is being employed more and more, to the detriment of the environment. Bad news.
metalman.
Our great province being dismantled to any country without any regard to the environment or our society.
What, the chicken littles are after fracking now? It never ends.
This being the case, the gentleman from Ft. St. John Mr. Ludwig I believe his name was befor he passed away recently was not a terrorist, but a hero. He was only one man but he fought the battle that we have inherited. We must write our MLAs to protest the distruction of our waterways and environment.
“What, the chicken littles are after fracking now? It never ends.”
The world is made up of many different and diverse people.
Many would agree that it is wise for people to question actions that may possibly affect the health and security of our future generations.
On the other hand, we have those who can only see the riches of immediate gain, with no apparent regard for the future.
metalman.
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