Shell has decided to postpone the final investment decision (FID) on its US$22bn LNG Canada project in British Columbia (Canada), as the company is reorganising its Upstream activities and seeking to reduce costs and capital investment in a context of lower oil prices. In 2016, the company has exited the Bab sour gas project in Abu Dhabi (United Arab Emirates) and will postpone the final investment decisions on LNG Canada and Bonga South West in deep water Nigeria.
LNG Canada will consist of two LNG trains of 6 Mt/year each (up to 6.5 Mt/year) with an option to later double the liquefaction capacity to four trains. Commissioning was expected in 2022. In January 2016, the Canadian energy regulator, National Energy Board (NEB), approved a 40-year export licence to LNG Canada, a joint venture of Shell (50%), Petrochina (20%), Kogas (15%) and Mitsubishi (15%). LNG Canada will be allowed to export up to 38 bcm/year of LNG (maximum exports of 1,494 bcm of gas over the 40-year period) from the proposed gas liquefaction plant to be located near Kitimat, British Columbia, Canada. The project received approval from the Oil and Gas Commission (OGC) of British Columbia in early January 2016.
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