Welcome!

News Feed Item

Companies Behind LNG Canada Formalize Joint Venture; Milestone for Proposed Project

Tokyo, May 1, 2014 - (JCN Newswire) - Shell Canada Energy (Shell), PetroChina Corporation, Korea Gas Corporation (KOGAS) and Mitsubishi Corporation have today announced, in the presence of Honourable Christy Clark, Premier of British Columbia and Honourable Rich Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier, the signing of a joint venture agreement to develop a proposed liquefied natural gas (LNG) export project - LNG Canada. The new operating entity, LNG Canada Development Inc., is incorporated and registered under the federal laws of Canada. The proposed project, to be located in Kitimat, British Columbia, is subject to regulatory approvals and a Final Investment Decision by the joint venture.

LNG Canada continues to bring together the four companies' extensive development experience, technical depth, financial strength and access to markets required to be a leading LNG developer in Canada. The signing of the joint venture agreement is an important milestone for the project as it formalizes the joint venture and creates an operating entity that enables LNG Canada to progress the project and enter into agreements with potential suppliers and contractors. The project's corporate offices will continue to be located in Vancouver, British Columbia and Calgary, Alberta, with the project office based in Kitimat, British Columbia.

"While we are in the early evaluation process and a decision to build the project is still a while away, this agreement reinforces our commitment to developing an LNG facility in British Columbia and allows us to proceed with the next steps in our project assessment," said Andy Calitz, CEO LNG Canada. "We will need to continue to work closely with the provincial and federal government to ensure that the project is economically viable, as well as working closely with First Nations, the local communities, and regulatory agencies, and move forward on a number of commercial agreements and contracts. We remain cautiously enthusiastic about the potential opportunity in B.C. and look forward to exploring it further."

The demand for natural gas, the cleanest burning fossil fuel, remains high in Asia and other global markets. LNG Canada would deliver a project that offers a new source of competitively priced LNG to global markets, while providing benefits to Canada, British Columbia and its coastal region.

"These four companies are working together to realize the immense potential of B.C.'s LNG - an industry that could create up to 100,000 jobs overall in our province by exporting clean, reliable energy to the growing economies across the Pacific," said Premier Christy Clark. "There's more work to do, but momentum is clearly on our side."

While there is considerable work that still needs to be done prior to the four companies making a Final Investment Decision, the initial technical work has now been completed, land has been acquired, the Project Description has been submitted and the Environmental Assessment is currently underway.

"Today is an important step forward for LNG Canada and we are pleased to join PetroChina, KOGAS and Mitsubishi - strong LNG companies in their own right - to move this project forward together. LNG Canada must compete across a portfolio of global options but we remain optimistic that with the continued co-operation of all interested parties LNG Canada can offer a valuable global market for Canadian natural gas," commented Jorge Santos Silva, Executive Vice President Shell Upstream Americas Commercial, New Business Development and Integrated Gas.

"It is a great pleasure and honour to work closely with Shell, KOGAS and Mitsubishi Corporation. This milestone signifies our strong alignment and though we come from different corners of the world, we are confident that we will continue to step forward together" said Bi Jingshuang, Director - Legal Department of China National Oil and Gas Exploration and Development Corporation (CNODC, who represents PetroChina.)

"LNG Canada, if realized, has the potential to play an important role in meeting the energy needs of Japan and other countries that rely heavily on LNG, and we are pleased with this achievement," stated Hiroki Haba, Vice President, Natural Gas Business Division, Mitsubishi Corporation. "Together with the significant investments we have been making in the upstream sectors in western Canada, Mitsubishi Corporation remains fully committed to making the project a success."

"The project provides a great chance to enhance energy supply security for countries, including Korea, which are always in need of stable energy sources. LNG Canada is committed to the development of a sustainable project providing benefits to local and global communities alike," added Jongkook Lim, Vice President, LNG Business Department, Korea Gas Corporation.

Upon signing the Joint Venture Agreement, the joint venture partners' respective interests in the project have been updated, with Shell now holding 50%, PetroChina 20% and each of KOGAS and Mitsubishi Corporation holding 15%.

About LNG Canada

The proposed LNG Canada project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas (LNG), including marine facilities. 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 to four trains.

LNG Canada's vision is to work collaboratively with the local community, First Nations and stakeholders, to deliver a project that is safe, reliable and reflective of community interests.

Project milestones to date:

2011 - The Joint Venture was assembled.

2012 - LNG Canada selected TransCanada to own, operate and construct the pipeline

2013 - LNG Canada also had its export license approved by the NEB and filed its Project Description.

2014 - LNG Canada secured its preferred site in Kitimat.

About the Joint Venture Companies

Shell

Shell Canada Energy is one of the largest upstream divisions of Royal Dutch Shell plc ("Shell"), which is a global leader in LNG and helped pioneer the liquefied natural gas (LNG) sector, providing the technology for the world's first commercial liquefaction plant in 1964. Shell currently has ten LNG projects in operation with approximately 26.1 million tonnes per annum (mtpa) operational LNG capacity, in nine countries, and two projects with an additional 7.5 mtpa under construction. Shell was a partner in the first-ever purpose built LNG carrier and has been delivering LNG safely for nearly half a century. Today, Shell is one of the largest LNG vessel operators in the world, with interests in around a quarter of the LNG vessels in operation. Shell has key positions in North America unconventional gas, including amongst others the Montney shale development in Canada.

PetroChina

Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment (Hong Kong) Limited) ("PetroChina") is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a contractor in engineering construction. PetroChina officially launched three LNG projects in June 2004, two of which started operations in the first half of 2011.

KOGAS

Kogas Canada LNG Ltd. (an affiliate of Korea Gas Corporation) ("KOGAS") is the world's largest LNG importer. As the nation's sole LNG provider, KOGAS currently operates three LNG terminals and a nationwide pipeline network, supplying natural gas from around the world to power generation plants, gas-utility companies and city gas companies throughout the country. KOGAS has also diversified into LNG swapping and trading, and LNG terminal construction, operations and management.

About Mitsubishi Corporation

Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.



Source: Mitsubishi Corporation

Contact:
Mitsubishi Corporation
Telephone:+81 3 3210 2171 
Facsimile:+81 3 5252 7705


Copyright 2014 JCN Newswire. All rights reserved. www.japancorp.net

More Stories By JCN Newswire

Copyright 2008 JCN Newswire. All rights reserved. Republication or redistribution of JCN Newswire content is expressly prohibited without the prior written consent of JCN Newswire. JCN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.