Chinese state-held oil and gas company Petrochina has approved a US$3.46bn investment in the Canadian LNG liquefaction terminal project, in which it holds 15%. Besides, the other project partners are set to announce a decision on the CAD40bn (nearly US$31bn) project shortly.
The up to 26 Mt/year gas liquefaction project (two 6.5 Mt/year LNG trains, with an option to add two similar trains) is developed in Kitimat (British Columbia, western Canada) by Shell (40%), Petronas (25%), Petrochina (15%), Mitsubishi Corporation (15% through its affiliate Diamond LNG Canada) and Kogas (5%). Petronas acquired its 25% stake in June 2018, prior to which Shell, Petrochina and Kogas held 50%, 20% and 15%, respectively.
The final investment decision (FID) was put off twice in 2016 because of a difficult market situation but the outlook for the project has brightened. It will be taken according to the overall competitiveness and affordability of the project and will also depend on external factors such as global energy markets.