LNG Canada committed to starting construction on project in 2018
VANCOUVER, (Reuters) - The chief executive of the LNG Canada project on British Columbia's northern coast said that the company was committed to starting construction on the C$40 billion ($31.1 billion) liquefied natural gas export project this year.
An investment decision on the terminal was delayed in 2016, due to sagging oil prices that hit cash flows, along with an unfavorable supply-demand outlook, but remains on track for 2018, Andy Calitz said at an LNG conference on Tuesday.
"It didn't make sense in July 2016," he said. "When (our stakeholders) asked the inevitable question, when will you reconsider the FID? Our answer was: We will be in construction in 2018. I reaffirm that commitment today."
Calitz later told reporters that a trade spat over imported fabricated industrial steel components (FISC) was no longer an issue for the project and would not have any impact on an investment decision by the joint venture partners.
LNG Canada had asked Canada's Finance Ministry to exempt it from the 45.8 percent anti-dumping tariffs, which apply to certain FISC components imported from Spain, South Korea and China. LNG trains, most of which are built in Asia, are FISC components.
Calitz did not make clear why the FISC duties were no longer an issue, but said the modules have been contracted and the company has more clarity on the parameters and legal application of the tariffs.
LNG Canada is a joint venture between Royal Dutch Shell Plc , PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.
($1 = 1.2871 Canadian dollars) (Reporting by Julie Gordon in Vancouver; Editing by Richard Chang and James Dalgleish)
The US Energy Information Administration (EIA) reported in April that the US set records for natural gas production in 2017.
- Energy Web Atlas
Since market reforms first started in 1978, China has shifted from a centrally planned economy to a market-based economy, experiencing rapid economic and social development.
Russia aims to ally with Qatar in LNG competition with Australia and other LNG-exporting majors over the coming years.
Maximize Profitability with Advanced Analytics at Natural Gas Processing Plants
Incorporating economic data into process modeling is key to optimizing operations and maximizing profits at gas processing plants. However, maintaining optimal operations are often challenging due to changing market dynamics, contract structures and increasing process flexibility. Today, gas processors are leveraging Predictive Control and First Principles models to accurately determine and control the optimal operating targets in real time based on the most current plant conditions and profitability, optimizing recovery of natural gas liquids. Learn how real-time analytics, combined with decision support tools, empower companies to:
•Improve processing margins by up to 5%
•Maximize NGL production through improved availability and optimized process conditions
•Improve compositional control to operate closer to product specifications
May 22, 2018 10am CDT