Royal Dutch Shell and its joint venture projects approved the LNG Canada project for Kitimat on Oct. 2, 2018.
Building the $40-billion project is estimated to generate $24 billion in investment in B.C., the province says. Another $16 billion is expected to be generated in construction activities that will take place off shore.
Included as part of the project is TransCanada's Coastal GasLink pipeline, which will ship gas from the Groundbirch area to Kitimat, and includes to Fort St. John contractors — Surerus Pipeline and Macro Industries.
Political leaders in Northeast B.C. say the project brings long-term investor confidence and stability to the region.
“This is a game changer for our region, the province of British Columbia, and our nation. It will create substantial growth and investment in our future. The long-term sustainability of our region is dependent on the economic success of natural gas exploration and production and this investment decision will allow the opportunity to further expand and diversify our services and industries for our future"
— Mayor Lori Ackerman, Fort St. John
"The sale of liquefied gas will bring online a whole new stream of public revenue that will flow to the people of British Columbia over this next century. For my own constituents of the Peace River region, we will certainly benefit from the construction of the pipeline and the continued extraction of gas from the Montney gas play."
— MLA Dan Davies, Peace River North
"The Chamber believes the development of LNG Canada will bring tremendous benefits to our community. We will continue to advocate for what is best for our members, and a robust energy sector is what is best right now."
— Nelson Stowe, president, Fort St. John & District Chamber of Commerce
"This is fantastic news for Taylor, Northeast B.C., the rest of the province, Canada and the world. Our world class resource will be developed responsibly by our world class industry and used world wide to reduce carbon emissions."
— Mayor Rob Fraser, Taylor
“The joint venture partners in LNG Canada have the conviction to go ahead with a huge project, and we are hopeful that this decision will set a precedent for other corporations looking to develop our local resources.”
— Mayor Bill Streeper, Northern Rockies
"We have one more to give thanks to this Thanksgiving Day. The LNG Canada final investment decision marks the start of a new chapter in the economic history of Fort St. John and Northeast B.C. FSJ for LNG would like to thank John Horgan and the NDP for creating an environment favorable to an LNG Industry in BC. We also do not forget Christy Clark and the BC Liberals for all the years spent laying the foundation that led to this day."
— Alan Yu, Fort St. John for LNG
Royal Dutch Shell Plc is the lead partner in LNG Canada, with a 40 per cent stake. The project is rounded out by Petronas, which holds 25 per cent, Petro China and Mitsubishi, which each hold 15 per cent, and Korea Gas Corp., which holds five per cent.
The investment decision is for two processing units, called trains, that will liquefy natural gas sourced from Northeast B.C. and then shipped overseas.
Each project partner will supply its own gas for the project, with the first LNG expected to before the middle of the next decade, according to the release. Each partner will also offtake and market its share of LNG.
The first phase will produce 12 million tonnes of LNG annually. That would require 1.8 billion cubic feet (bcf) of natural gas per day. Canadian producers currently produce about 16 bcf per day.
Both Shell and Petronas have a significant stake in the Montney — indeed, Shell just celebrated 10 years of its assets in Groundbirch, where the Coastal GasLink pipeline begins.
Mitsubishi has a joint partnership with Encana Corp. in the Cutbank Ridge project. Korea Gas is the only partner that doesn’t have it own gas assets in Western Canada.
The plant and pipeline will employ approximately 10,000 people at peak construction, according to a news release. There will be up to 900 people at the plant during the operations of its first phase.