Prince George, B.C. – Hot on the heels of a provincial throne speech saturated with references to the future of LNG in BC comes word that Rio Tinto has entered an agreement to sell or lease a wharf and land option in Kitimat to LNG Canada.

LNG Canada proposes to construct and operate a natural gas liquefaction plant and marine terminal export facility at that location.  LNG Canada is a joint venture comprised of Shell Canada Energy, Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment Limited), Kogas Canada LNG Ltd (an affiliate of Korea Gas Corporation) and Diamond LNG Canada Ltd (an affiliate of Mitsubishi Corporation).  The deal gives LNG Canada a staged series of options payable against project milestones.

Rio Tinto chief executive Sam Walsh says the agreement “will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economy of British Columbia.”

LNG Canada vice president Andy Calitz says “we believe the LNG Canada project represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and communities of BC.”